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Current Scenario

General Characteristics

Kapas is unginned cotton or the white fibrous substance covering the seed that is obtained from the cotton plant.

Current Scenario

The world cotton area and production are estimated at around 30-31 million hectares and 20 million tons respectively.

The biggest cultivators of cotton are America, India, China, Egypt, Pakistan, Sudan and Eastern Europe, with China, US and India being the three largest producers of cotton.
   
US has a considerable share in world exports. India and China both fall short of their domestic requirement and are net importers.
   
Among the consumers China leads the way being followed by India, Pakistan, US and Turkey.
       
       

    Cotton Area (in lakh hectare) / Production (in lakh bales) / Yield (kgs per hectare)
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(bales of 170 kgs each)

State 2013-14 2012-13
Area Production Yield Area Production Yield
Punjab 5.05 21 707 4.8 21 744
Haryana 5.57 23 702 6.14 25 692
Rajasthan 3.03 14 785 4.5 17 642
North Total       13.65 58 722 15.44 63 694
Gujarat 26.91 116 733 24.97 93 633
Maharashtra 38.72 81 356 41.46 79 324
Madhya Pradesh 6.21 19 520 6.08 19 531
Central Total       71.84 216 511 72.51 191 448
Andhra Pradesh 21.42 72 571 24 84 595
Karnataka 5.78 18 529 4.85 15 526
Tamil Nadu 1.17 5 726 1.28 6 797
South Total 28.37 95 569 30.13 105 592
Orissa 1.34 4 507 1.19 4 571
Others 0.33 2 1030 0.51 2 667
Grand Total 115.53 375 552 119.78 365 518
 
    Cotton Balance Sheet
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(Quantity in lakh bales of 170 kgs each )

ITEM 2013-2014 2012-2013
SUPPLY
Opening stock 35 40
Crop size 375 365
Imports 17 14.59
Total Availability 427 419.59
DEMAND
Mill Consumption 258 250.14
Small-Mill consumption 24 23.02
Non-Mill Consumption 15 10
Total Consumption 297 283.16
Exports 90 101.43
Total Disappearance 387 384.59
Carry Forward 40 35
 
    Lint Prices
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(Lint prices in Rs. per Candy Spot)

Date J-34 H-4 S-6 BB DCH-32
13-14 Dec-13 13-14 Dec-13 13-14 Dec-13 13-14 Dec-13 13-14 Dec-13
10/1/2013 42900 31800 44800 33400 48500 33700 48900 35200 57500 48000
10/15/2013 42700 31300 43700 32300 44900 32900 46000 35000 56500 45500
10/31/2013 42000 31500 42700 31800 41000 33800 41900 34200 53000 45500
11/15/2013 40000 31800 40800 32000 40200 33800 40600 35100 54000 44700
11/30/2013 38200 32100 39200 32400 38800 33700 39400 34500 56500 45200
12/14/2013 38200 32800 39200 33100 39000 34100 39500 34500 64000 45700
12/31/2013 40900 32700 41600 32900 40200 33900 40800 33900 63500 45200
1/15/2014 43100 32700 43800 33100 42800 33700 43200 34100 65500 45000
1/31/2014 42900 33600 43500 33800 42700 34100 43400 34700 64000 45000
2/15/2014 43000 35000 43900 35300 42600 34600 43500 35300 64400 46100
2/28/2014 41600 37700 42600 38100 41800 37200 42100 37500 61000 47300
3/15/2014 42000 38700 43000 39300 41800 39300 42000 40200 61500 48200
3/29/2014 42400 37800 43400 38500 41800 38800 42200 40000 60500 50000
4/15/2014 42400 37200 43400 38000 41500 38400 42200 39900 58000 49400
4/30/2014 44600 37200 45600 37900 42400 37500 43700 39200 59000 48500
 
    World Demand and Supply Scenario
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( In Million Tonnes)

  2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
PRODUCTION 26.07 23.50 22.33 25.40 28.04 26.87 25.70
CONSUMPTION 26.68 23.86 25.52 24.5 22.79 23.34 23.55
EXPORTS 8.47 6.60 7.79 7.71 9.87 10.07 8.72
ENDING STOCKS 12.25 11.75 8.56 7.75 14.60 17.89 20.04
 
     World Cotton Prices : Monthly Average Cotlook "A" Index (in US CENTS / LB)
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MONTH 2011-2012 2012-2013 2013-2014
AUGUST 114.10 84.40 92.71
SEPTEMBER 116.90 84.15 94.60
OCTOBER 110.61 82.17 89.35
NOVEMBER 104.75 80.87 84.65
DECEMBER 95.45 83.37 87.49
JANUARY 101.11 85.51 90.96
FEBRUARY 100.75 89.71 94.05
MARCH 99.50 94.45 96.89
94.20 94.20 94.20 94.20

 

Indian Scenario
  India with an annual production of 15-16.5 million bales (1 bale=170 kg) is the World's third largest cotton producer. India also has the largest area under cotton. India produces around 11% of the world's cotton from 20% of the area.
     
  Despite having the largest area under cotton in the world, India ranks third in world output of cotton due to its abysmally low average yield of 300 kg against a world average of 550 kg per hectare.
     
  Although cotton is cultivated in almost all the states in the country, the 9 states of Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Punjab, Haryana, Rajasthan, Tamil Nadu and Karnataka account for more than 95% of the area under and output.
     
  In India cotton is sown during March to September and harvested during September to April. The peak marketing season for the crop is during November to March.
     
  Cotton is the most important raw material for India's Rs. 1,50,000 crores textile industry, which accounts for nearly 20% of the total national industrial production and provides employment to over 15 million people.
     
  It also accounts for more than 30% of exports, making it India's largest net foreign exchange industry. India earns foreign exchange to the tune of $10-12 billion annually from exports of cotton yarn, thread, fabrics, apparel and made-ups.
     
  Cotton accounts for more than 75% of the total fibre that is converted into yarn by the spinning mills in India and 58% of the total textile fabric materials produced in the country.
     
     
Market Influencing Factors
  Only one-third of the area is under irrigation, and this causes the cotton output to vary considerably from year to year in response to the vagaries of weather and pest attacks.
     
  More than 80 percent of the cotton produced is sold out by March 31 every year and the price starts firming up from April and starts easing only in September when the new crop starts arriving in the market.
     
  The Government of India fixes the Minimum Support Price for cotton and several Government agencies like Cotton Corporation of India, Maharashtra State Co-operative Cotton Growers' Marketing Federation procure cotton at this price. This sets the trend for the price initially. But the industry involves large number of players and the market forces determine the price soon.
     
  The imports of cotton into the country and exports from the country.