Polyester Chain Report 2014 coming soon (Get 15% early bird discount on Pre-Book)
Nylon Chain Report 2014 coming soon (Get 15% early bird discount on Pre-Book)
World Fibre Report 2014 coming soon (Get 15% early bird discount on Pre-Book)
Registration | Login
Advertise | Contact us | Suggestion | Mobile Apps blackberry app icon
YnFx logo
facebook icon Twitter icon linkedin icon Google + icon YouTube icon rss icon
Cotton Industry in India
06 Aug 2010 - India - FREE REPORTS
India accounts for around 20 percent of world cotton production and has recently emerged as a major cotton exporter.
 
The central region of India accounted for an estimated 64 per cent of Indian cotton production in 2009-10, with the south and north zones accounting for 22 per cent and 14 per cent, respectively. Nearly 40 per cent of Indian cotton is irrigated, with the remainder being rainfed. The growing periods for cotton in India are from late April to December in the northern zone; mid-June to February in the central zone; and August to February in the southern zone.
 
There has been a significant yield improvement in India since the adoption of genetically modified (GM) and hybrid cotton varieties in 2003-04. India cotton production is forecast to be 70 per cent higher in 2010-11 than in 2003-04. The GM cotton varieties adopted in India are insect resistant, based on the insertion of Bt (Bacillus thuringiensis) genes. The GM varieties introduced in 2003-04 had only a single Bt gene, but varieties that incorporated two different Bt genes were introduced in 2008-09. GM cotton varieties are estimated to have comprised 85 per cent of total Indian cotton plantings in 2009-10.
 
The increase in cotton production has shifted India from being a small net importer of cotton in the early 2000s, to being a substantial net exporter in recent years. In 2009-10, India was second only to the United States as an exporter of raw cotton and accounted for an estimated 15 per cent of world trade.
 
The increase in cotton production has shifted India from being a small net importer of cotton in the early 2000s, to being a substantial net exporter in recent years. In 2009-10, India was second only to the United States as an exporter of raw cotton and accounted for an estimated 15 per cent of world trade.

Cotton accounts for around 75 per cent of Indian mill consumption of textile fibres. In 2007-08, the Indian textile industry employed 88 million people and generated export income of US$21.5 billion. Domestic production of cotton and textile exports has been boosted by the phasing out of the WTO Agreement on Textiles and Clothing, which is commonly known as the Multi Fibre Arrangement (MFA), which was completed in 2005. The MFA imposed quotas on the volume of textiles developing countries could export to developed countries over the period 1974 to 2004.

Each year the Indian Government sets minimum support prices for its cotton growers for the various quality types of kapas (seed cotton), taking into account domestic and international supply and demand conditions for cotton. The minimum support prices are maintained through purchases of kapas at auction by the Cotton Corporation of India (CCI), a statutory government organisation.
CCI purchased around 30 per cent of the Indian cotton harvest in 2008-09, when world cotton prices declined sharply because of the world financial crisis. However, the recovery in world cotton prices in 2009-10 has enabled CCI to largely dispose of the accumulated cotton stocks in 2009-10.
 
The bound or maximum tariff rates for cotton in India are 100 per cent for raw cotton and 150 per cent for cotton that is carded or combed. However, the applied tariff for raw cotton is currently zero, having been lowered from 10 per cent in mid-2008, while the tariff for carded or combed cotton is 30 per cent. The Indian textile industry benefits from a government arrangement termed the ‘duty entitlement passbook scheme’ that enables textile exporters to claim rebates equivalent to the duty paid on imported products used to produce their export products.
 
The Indian Government also controls Indian raw cotton exports in order to keep cotton prices low for its domestic textile industry. On 21 May 2010, the Indian Government designated exports of raw cotton as a ‘restricted item’, therefore requiring an export licence. This was a change from the Open General Licence regime that had operated with Indian raw cotton exports since the 2001-02 season.
 
Source: abare.gov.au
 
 
 
Country Related Reports
 
IT Theft - Boon or Bane

New Business Opportunities at India-ITME 2012

Indian Textile Machinery Industry Poised To Grow 15%25 Per Annum

Indian Spun Yarn Exports Surged in June 2012, up 44% Y-o-Y

Italy - Textile Machinery Sector Experiences Significant Recovery.

 
 
 
Let Us Know Your Need
click here icon
 
Pricewatch Enquiry
Name
Company
Phone
Email
Country
 
Word Verification
 
News & Views
Pakistan witnessed an increase of 4.73 percent in cotton arrival  
  19 Sep , 2014 Read full story  
Cotton-to-Clothing Export Strategy to be launched by Zimbabwe to revive its cotton and textile industry  
  19 Sep , 2014 Read full story  
Tencel factory, world’s largest production facility for Lyocell fibre opens its doors in Austria  
  19 Sep , 2014 Read full story  
 
Prices
 
Market Intelligence
  • Polyester Intelligence
    YnFx's Polyester Intelligence Service consolidates all the information at a click. This service provides the following:
    • Daily Price Trends
    • News & Views
    • Weekly Prices on Polyester Chain
    • Price Forecast Covering 3 Regions
    • Spun Yarn Exports from India
    • Polyester Chain - Demand/Supply Statistics
 
Special Reports
 
Country Reports
  •  
                 
      column divider column divider
    Newsletter Signup
    Pocket-Sized Convenience
    YnFx apps
     
    live chat button