7/29/2019 190 - Copy.docx

1/16

190

CHAPTER17

COTTON1. IntroductionIn general, the conditions required for the cultivation of cotton are met within the seasonally dry

tropics and subtropics in the Northern and Southern hemispheres, but a large proportion of thecotton grown today is cultivated in areas with less rainfall that obtain the water from irrigation.

India was the first country in the world to commercialize cotton hybrids. The leading exporters

of cotton are USA, Uzbekistan, India, Brazil and Burkina Faso.

World ScenarioThe largest producers of cotton in the world are China, India, USA, Pakistan, Uzbekistan, Brazil

and Australia.During the year, 2006-07, total world production of cotton is 26,640 thousand tons.

Largest producer of cotton is China, followed by India and U.S.A. (Table 17.1)

Table 17.1: Showing area, production and productivity of major cotton growing countries

(2006- 07)COUNTRY AREA ('000 ha) PRODUCTION ('000 tons)

PRODUCTIVITY (tons/ha)China 5,740.0 7,180.0 1.2 India 9,160.0 4,760.0 0.5

USA 5,150.0 4,700.0 0.9Pakistan 3,080.0 2,090.0 0.6Uzbekistan 1,430.0 1,170.0 0.8 Brazil 1,090.0 1,520.0 1.3

Australia 0.0140 270.0 1.9 World 34,410.0 26,640.0 0.7

Source: Indian Cotton -A Profile 2007-2008, The Cotton Corporation of India Ltd.

Indian scenarioThe production of cotton lint in India is increasing at a steady pace from 3043 thousand tons in

2003-04 to 4760 thousand tons in 2006-07; this year production is expected to be 5270 thousandtons. Area under the cotton cultivation has shown a similar trend. The productivity is increasing

rapidly, it was 0.39 tons/ha in 2003-04 and it is expected to be 0.55 tons/ha in 2007-08. The table

below shows the details.

Table 17.2: Showing area, production and productivity of cotton lint in India

YEAR AREA (in 000ha)

PRODUCTION (in 000tons)

7/29/2019 190 - Copy.docx

2/16

PRODUCTIVITY (tons/ha)2003-04 7630 3043 0.39

2004-05 8786 4131 0.472005-06 8677 4148 0.47

2006-07 9142 4760 0.52

2007-08 9530 5270 0.55

2. Major producing stateGujarat is the leading producer of cotton in India followed by Maharashtra, Andhra Pradesh,Punjab, Madhya Pradesh, and Haryana etc. Highest productivity is also reported from Gujarat

followed by Tamil Nadu, Andhra Pradesh, and Punjab etc. The details are given below in table

17.3.

Table 17.3: Showing area, production and productivity of leading cotton lint growing states

in India AREA (000ha)

PRODUCTION (000 tons)

PRODUCTIVITY (tons/ha)

STATES2005-06 2006-07 2007-08 2005-06 2006-07 2007-08 2005-06 2006-07 2007-08

Gujarat 1906 2390 2516 1513 1717 1870 0.79 0.71 0.74Maharashtra 2875 3070 3191 612 884 1020 0.21 0.28 0.32

Andhra Pradesh1033 972 1096 510 595 731 0.52 0.61 0.66

Punjab 557 607 648 357 442 408 0.61 0.72 0.63Madhya Pradesh620 639 662 306 306 357 0.49 0.47 0.53

Haryana 583 530 478 238 272 272 0.37 0.51 0.56

Rajasthan 471 350 368 187 136 153 0.39 0.38 0.41Karnataka 413 375 371 110.5 102 136 0.26 0.27 0.36

Tamil Nadu 140 122 123 93.5 85 85 0.66 0.69 0.69Others 79 087 77 17 17 34 0.21 0.19 0.44

Total - - - 3944 4556 5066 - - -

Loose lint - - - 204 204 204 - - -

Grand total 8677 9142 9530 4148 4760 5270 - - -

Source: Cotton Advisory Board, http://www.cotcorp.gov.in/statistics.asp

3. Commercial cotton varietiesFollowing are the important commercial varieties of cotton including some hybrids:

7/29/2019 190 - Copy.docx

3/16

F-414/H-777/J-34 Raj

F-414/H-777/J-34 Hybrid Rajasthan

F-414/H-777/J-34 Hybrid (Haryana)

F-414/H-777/J-34 Hybrid (Punjab)

SHANKAR 6/10 (SAU)

SHANKAR 6/10 (Guj) Suvin

Description of some of the pedigree varieties is given below in table 17.4

Table 17.4: Description of some pedigree varieties of cotton

Variety DescriptionJ34 SG It is a selection from non descriptive hirustum mixtures. Re-selection from Bikaneri

Narma. It is sown in the months of April/May and the crop is ready

for picking by October/December.. J34RG and SG are grown in the states of

Punjab, Haryana and Rajasthan and total production per annum is around 2.6 million bales ofeach of 170 Kg. LRA-5166 LRA 5166 is derived from a three variety cross involving Laxmi

Cotton.Reba B-50 from Central Africa and AC-122.. It is sown in the month of June/July and the

crop is ready for picking by December/January. Principally this variety is grown in Maharashtra,Madhya Pradesh, Andhra Pradesh, Karnataka and Tamil Nadu. Total production is 1.6 million

tons. MECH-1 It is an intra hirustum hybrid between Female C-4 X Male C-549. It is sown in

the month of June/July and the crop is ready for picking by November/January. This type of

cotton is mainly grown in the states of Madhya Pradesh and Maharashtra. Quantity of yield isabout 1.7 million bales of 170 Kg each. HYBRID -4 It is a cross between Guj.67(G.hir.) x

American nectariless(G.hirs.). Its duration is June/July to November/February. It is grown in the

states of Gujarat, Madhya Pradesh, Maharashtra and Andhra Pradesh under irrigated and assuredrainfall conditions. It is generally cultivated in well drained black, sandy, loam soil. This variety

matures about 5-6 weeks early as compared to other standard Gujarat cottons. It has continuous

production of flushes of flowers and bolls. It is estimated that production of Hybrid-4 may be

around 13 lakh bales of 170 Kg each. If the entire country is taken into consideration. Thus iteasily meets the internal demand and export needs as well. Innumerable inquiries are being made

by European countries and Japan fort his cotton variety.

SHANKAR-6 It is a cross between G.Dot.100(G.hirs.) x G.Cot.10(G.hirs.). It is sown in themonth of June-July and is ready for picking in November and may extend upto

4. Good Agricultural Practices (GAP) Adoption of improved varieties. Integrated water and nutrient management.

Integrated pest and disease management.

7/29/2019 190 - Copy.docx

4/16

5. Harvesting seasonThe harvesting season of cotton in leading states is shown in the graph below:

- Month of harvesting194

States Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

GujaratMaharashtra

Andhra

PradeshPunjab

Madhya

Pradesh

HaryanaRajasthan

Karnataka

Tamil Nadu

6. Arrival patternThe cotton arrives in the market in the period of SeptemberApril. However cotton from TamilNadu arrives market in the months of June- July also.

7. Concentrated pocketsThe detail of concentrated pockets of cotton in leading states is listed below in table 17.5.

Table 17.5: showing concentrated pockets of cotton in leading states

States Concentrated pocketGujarat Kutchh, Banskantha, Patan, Sabarkantha, Mehsana, Ganganagar, Ahemdabad,

Surendranagar, Kheda, rajkot, Jamnagar, Porbandar, Junagarh, Amreli, Bhavnagar, Godhra,

Dahod, vadodara, Bharuch, Narmada, SuratMaharashtra Nandurbar, Dhule, Jalgaon, Buldhana, Aurangabad, Jalna, Parbhani,

Amravati, Wardha, Nagpur, Yavatmal, Akola, Hingoli, Nanded, Beed,Ahmednagar, Pune, Satara

Andhra Pradesh Echoda, Nirmal, Bhainsa, Asifabad, Bela, Pedapalli, Parkal, Warangal,

7/29/2019 190 - Copy.docx

5/16

Dachefalle, Sattenapalle, Amravathi, Madnor, Narsaraoped, Guntur, Ganpawarm, Krishna,

Parachuru, Chilkalurpet, Medarmetla, Ongole, Nellore, Tadpatri, Guntkal, Adoni, Nandyal

Punjab Bhatinda, Faridkot, jagraon, Ahmadnagar, kotkapura, Fazilka, Muktasar, Dhuri, Nabha,Branala, jaitu, Malout, Abohar, Gidderbaha, Goniana, Sangata, Raman, rampuraphul, Tapa,

Bhuchu, Buldhlada, Bareta, Sardulgarh 195 Madhya Pradesh Ratlam, Badnwar, Manavar,

Kukshi, Dhar, Anjad, Dhamnod, barwah, Bhikangaon, Khargone, sendhwa, Sanawad, Khandwa,Burhanpur, Tukaithad, Khategaon, Harda, Sirsali, Khirkiya, Sausar, Pandurna Haryana Danwali,Kalanwali, Sirsa, Ratia, Fatehabad, Adampur, Hissar, Bhuna, Hansi, Bhiwani, Tohana, Ukalana,

Kaithal, Narwana, Jind, Sonipat, Rohtak, Jhajjar, Rewari, Monindergarh, Rajasthan

Kesrisinghpur, Sri Karanpur, Gajsinghpur, Rahsinghnagar, Anoopgarh, Gharsana, Rawla,Khajuwala, Sri Ganganagar, Sadulshar, Sangaria, Hanumangarh, rawatsar, Bhadra, Khertal,

Naugaon, Merta, Beawar, Bijaynagar, Kekri, Bhilwara, Asind, Banswara

Karnataka Bijapur, Bagalkot, raichur, belgaum, Dharwad, NAval Gund, Gadag, Bellery, Haveri,

Chitradurga, Shimoga, Arsikere, Mysore Tamil Nadu Villupuram, Panruti, Attur, Thanjaur,salem, Erode, Perundurai, Kangayam, Dharapuram, Tirupur, Coimbatore, Udalmpet, Dindigul,

Madurai, Sattur, Kovilpatti, Triunelveli

8. Criteria and description of grades

9. Packaging and its detailsCotton lint is packed in bales of 170 Kg.

11. Export and export potentialA. Domestic strengths for export of cotton lint

Domestic strengths for export of cotton from India are as follows:

India produces sizeable quantity of cotton next only to China and USA. India has bred a number of useful hybrids and superior varieties, apart from Bt cotton varieties

for cultivation and have been made available to farmers for cultivation. There is a strong research support for cotton cultivation, as Central Institute of Cotton Research

is located in Maharashtra and also State Agricultural Universities.

Government of India in collaboration with Cotton Corporation of India has launched

Technology Mission on cotton with a view to increase total production of cotton, by increasingproductivity by better varieties and bringing more area under irrigation. As a result a number of

Mini Missions were taken up to increase production.

India has also embarked upon Mini Mission IVwith a view to improve the quantity of lint by

installing more modern ginning machines in cotton factories.

7/29/2019 190 - Copy.docx

6/16

B. Export

Indias export of cotton was insignificant up to 2004-05 and increased only during 2005-06 and2006-07. Cotton export from India increased from 13,306 tons in 2002-03 to 1,001,718 tons in

2006-

C. Export potentialExport potential of cotton is discussed region / areas wise in the following paras:

(i) ASEAN countries

ASEAN countries imported 1,059,967 tons during 2006. There is a decrease of 3% in demand

over 2003. The largest importers in ASEAN countries are Indonesia (4,63,205 tons), Thailand(4,22,042 tons) and Vietnam (1,19,021 tons).Indias exports to these countries are approx 12% of

their requirements, exporting 50,534 tons to Indonesia, 44,478 tons to Thailand and 33,670 tons

to Vietnam and negligible quantities to Philippines and Malaysia. Main competition for India forexport of cotton is from Australia and U.S.A. India is nearer to these countries from location

point of view compared to U.S.A. India is supplying at much lower prices compared to U.S.A

and Australia but still, India is not able to corner more than 12% share of imports.India needs to

strive for higher productivity and lower cost of production on one hand and improve quality onthe other for enhancing exports to these countries.

(ii) KoreaRepublic of Korea imported 216268 tons of cotton during 2006; however India exported 6999

tons of cotton during 2006. The other exporters were U.S.A (83,944 tons), Australia (53,458

tons) and Brazil (40,091 tons).Inspite of the fact that India is supplying cotton at muchcompetitive prices over U.S.A and Australia and India is also nearer to Korea location wise

compared to U.S.A and Brazil, then even Indias export is very less. India should make sincere

efforts for getting a larger share of Koreas imports of cotton.

7/29/2019 190 - Copy.docx

7/16

(iii) ChinaChina imported 3,641,417 tons of cotton during 2006 whereas India exported only 465388 tons

of cotton during 2006. The major competition is from U.S.A, Uzbekistan and Australia. U.S.A isthe largest exporter to China and India is second largest exporter.India location wise is 199 closer

to China and should have larger share in imports of China by becoming more competitive and

offering better quality cotton.

(iv) JapanJapan imported cotton to the tune of 1, 35,574 tons during 2006. However, India did not export

any quantity of cotton to Japan. It will be appropriate to explore the exports of Indian cotton toJapan.

(v) TurkeyTurkey imported total quantity of 7, 37,734 tons of raw cotton during 2006 and India exported

only 89,932 tons of raw cotton. India should try to penetrate this market in an effective manner

as there is good potential for export.

D. Measures for enhancing competitiveness

Following measures need to be taken for enhancing competitiveness of India for exporting cottonlint:

Yield of cotton in India are quite low compared to USA (2.0 tons/ha), Brazil (2.3tons/ha) and

Australia (4.4 tons/ha). India falls way below to the level of 1.2 tons/ha. Thus if India is to

compete successfully in cotton exports, it must increase the productivity by increasing area undersuperior and productive varieties and irrigation. Government of India has successfully launched

Technology Mission on cotton to achieve above objectives, but more intensified efforts need to

be taken up.

Improving quality of cotton lintFew years back, Indian cotton was considered as very inferior. However, after initiating certain

steps to improve the quality under Mini Mission IV, the exports to different countries have

greatly surged up, it will therefore, be very important to further improve the quality by covering

7/29/2019 190 - Copy.docx

8/16

more states and districts under modern ginning factories.For this, intensive monitoring of quality

will have to be done.

12. Documents required for exporta) Documents related to goodsa) Invoice b) Packing List c) Certificate of origin

b) Documents related to shipmenta) Mate Receipt b) Shipping Bill c) Bill of handing d) Airway Bill

c) Documents related to Payment

a) Letter of Credit (L/C) b) Bill of Exchange

d) Documents related to quality of goodsa) Phytosanitary Certificate b) GLOBALGAP Certification c) Health Certificate

200

e) Organic Certification- Certificate indicating material produce is based on organic farming.

f) Documents related to Foreign Exchange Regulations

GR Form: Documents required by RBI which assures to RBI that the exporter will realize theproceeds of goods within 180 days from the date of Shipment.

g) Other Document

Bank Realization Certification (BRC): This is the advice given by Foreign Exchange Bank after

the realization of money from Importer.

13. Price prevailing in international marketThe given below tables shows the annual average price range of cotton in the markets of ASEANcountries. The table 17.7 shows the pricing trend in the markets of ASEAN countries

Table 17.7: Summary of prices for cotton in target markets for India

Country Annual Average price Range (2003-08)

7/29/2019 190 - Copy.docx

9/16

CurrencyASEAN USD/kg 1.34 to 1.55

INR/kg 60.41 to 69.91Source: Comrade Database

14. Cost Calculation from harvest to packhouse to portCost estimates for exports of cotton from India (as per information collected during 2008)

(a) Procurement price*:

Approx. price (Rs. /kg) : 66.57 to 71.62*Price of cotton varies according to variety, month of procurement

(b) Charges for packing, transport etc.(below in table):

Table 17.8: Charges for packing, transport, etc.

Particulars Rs./kg

Handling, packing and transport to port 3.08 to 5.05

Source: The Cotton Corporation of India Ltd.201(c) Sea freight charges*:

Freight rates forordinary container are as follows:

Ordinary containers(Rates in US dollars)

20 40

(i) Dubai/Doha 600 900

(ii) Kuala Lampur/Singapore 100 175

(iii)Flaxo (UK)/Amsterdam 900 1450

7/29/2019 190 - Copy.docx

10/16

Cotton imports in India - 1996-97 onwards

YearQuantity in lakh

bales of 170 kgs

Value in

Rs. Crores

1996-97 0.30 56.42

1997-98 4.13 497.93

1998-99 7.87 772.64

1999-00 22.01 1967.92

2000-01 22.13 2029.18

2001-02 25.26 2150.01

2002-03 17.67 1789.92

2003-04 7.21 880.10

2004-05 12.17 1338.04

2005-06 5.00 695.77

2006-07 5.53 752.29

2007-08 6.38 978.54

2008-09 10.00 1377.80

2009-10 7.00 1195.64

2010-11 2.38 NA

2011-12 12.00 NA

7/29/2019 190 - Copy.docx

11/16

earQuantity in lakh

bales of 170 kgs

Value in

Rs/Crores

1996-97 16.82 1655.00

1997-98 3.50 313.62

1998-99 1.01 86.72

1999-00 0.65 52.15

2000-01 0.60 51.43

2001-02 0.50 44.40

2002-03 0.84 66.31

2003-04 12.11 1089.15

2004-05 9.14 657.34

2005-06 47.00 3951.35

2006-07 58.00 5267.08

2007-08 88.50 8365.98

2008-09 35.00 3837.13

2009-10 83.00 10270.21

7/29/2019 190 - Copy.docx

12/16

Staple-wise production of cotton

2010-11 76.50 N.A.

2011-12 128.81 N.A.

7/29/2019 190 - Copy.docx

13/16

Staple Group2002-

03

2003-

04

2004-

05

2005-

06

2006-

07

2007-

08

2008-

09

2009-

10

2010-

11

2011-

12

Short (below

20mm)9.00 7.60 7.11 6.80

60.00

4.00 3.50 4.00 4.00 4.00

Medium(20.5 to25.5 mm)

72.00 75.9 136.8 64

61.00 60.00 58.00 71.00 72.00Medium

long(25.0 to

27.0) 51.00 89.95 94.07 165.4 216.15

Long (27.5 to

32.0 mm)237.00 222.00 238.00 259.00 272.00

Extra Long

staple (32.5 mm

& above)

4.00 5.55 5.02 4.80 3.85 5.00 4.50 4.50 5.00 5.00

Total 136.00 179.00 243.00 241.00 280.00 307.00 290.00 305.00 339.00 353.00

7/29/2019 190 - Copy.docx

14/16

Staple-wise mill consumption of cotton (Non-SSI

Cotton year - October to

September

2002-

03

2003-

04

2004-

05

2005-

06

2006-

07

2007-

08

2008-

09

2009-

10(P)

Short (below 20.0 mm)5.99

(4.20)

5.93

(3.94)

5.16

(3.13)

5.95

(3.30)

6.06

(3.11)

5.52

(2.82)

4.67

(2.45)

4.84

(2.28)

Medium (20.5 to 25.5 mm)38.05

(26.72)

36.29

(24.13)

50.13

(30.57)

55.80

(30.98)

57.01

(29.25)

50.97

(26.05)

46.87

(24.57)

49.14

(23.09)

Medium Long (26.0 to 27.5

mm)

25.1

(17.62)

22.96

(15.27)

22.47

(13.71)

26.42

(14.67)

25.86

(13.27)

20.93

(10.70)

16.93

(8.88)

18.43

(8.66)

Long (28.0 to 33.5 mm)

53.02

(37.23)

70.3

(46.74)

72.24

(44.06)

83.18

(46.19)

95.59

(49.04)

106.95

(54.66)

108.29

(56.77)

127.43

(59.88)

Extra Long (34 mm &

above)

4.17

(2.93)

4.42

(2.94)

4.00

(2.44)

3.83

(2.13)

5.19

(2.66)

5.87

(3.00)

5.10

(2.67)

6.80

(3.20)

Total Indian Cotton126.33

(88.70)

139.9

(93.02)

153.98

(93.91)

175.18

(97.27)

189.71

(97.33)

190.24

(97.22)

181.86

(95.34)

206.64

(97.11)

Foreign Cotton16.09

(11.30)

10.49

(6.98)

10.00

(6.09)

4.91

(2.73)

5.21

(2.67)

5.44

(2.78)

8.89

(4.66)

6.16

(2.89)

Grand Total 142.42

(100%)

150.39

(100%)

163.98

(100%)

180.09

(100%)

194.92

(100%)

195.68

(100%)

190.75

(100%)

212.80

(100%)

SSI Mills 11.63 12.99 16.57 18.85 21.26 22.07 20.22 21.23

http://www.cotcorp.gov.in/statistics.aspx?pageid=2#provhttp://www.cotcorp.gov.in/statistics.aspx?pageid=2#provhttp://www.cotcorp.gov.in/statistics.aspx?pageid=2#provhttp://www.cotcorp.gov.in/statistics.aspx?pageid=2#prov

7/29/2019 190 - Copy.docx

15/16

State-wise Cotton consumption by the Textile Mills

States/Union Territories 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Andhra Pradesh 124155 132035 143196 160189 167613 174245

Assam 116 97 104 86 14 -

Bihar - - - - - -

Delhi - - - - - -

Gujarat 198638 236196 244931 256017 204494 180483

Haryana 93727 95289 137386 116909 125704 112916

Himachal Pradesh 69322 72730 84880 117146 131532 129457

Jammu & Kashmir 23 2108 7763 7968 7794 11401

Jharkhand 1250 1404 1650 1674 1683 1378

Karnataka 70318 82498 86579 87273 85918 67473

Kerala 30621 32882 37783 38306 34137 28873

Madhya Pradesh 145819 148296 158809 176171 182813 202771

Maharashtra 271506 321338 303287 330967 338220 303179

Manipur - - - - - -

Orissa 5525 2445 4709 3509 3486 2047

Punjab 265171 293549 350948 417345 468881 520173

Rajasthan 94694 96929 125517 134469 144008 139264

Tamil Nadu 1160891 1245826 1406506 1580694 1658525 1536573

7/29/2019 190 - Copy.docx

16/16

Uttaranchal 27 - 3227 19349 27318 38300

Uttar Pradesh 51782 54330 59782 58157 51654 42376

West Bengal 14966 16295 17641 19059 17644 14865

Union Territories - - - - - -

Dadra Nagar Haveli 36268 33332 30961 40790 43619 67759

Daman & Diu 104 75 62 150 223 136

Pondicherry 17081 17989 16215 13821 11912 9593

Total 2652004 2885643 3221936 3580049 3707192 3583262