KAPAS

GENERAL CHARACTERISTICS

Kapas, also known as unginned cotton, refers to the white fibrous substance covering the seed obtained from the cotton plant.

GLOBAL SCENARIO

The global cotton area and production are estimated to be around 30-31 million hectares and 20 million tons, respectively. The leading cultivators of cotton include America, India, China, Egypt, Pakistan, Sudan, and Eastern Europe, with China, the US, and India being the three largest producers.

The US holds a significant share in world exports, while India and China face shortages in their domestic requirements and are net importers. Among consumers, China leads, followed by India, Pakistan, the US, and Turkey.

INDIAN SCENARIO

India ranks as the world’s third-largest cotton producer, with an annual production of 15-16.5 million bales (1 bale = 170 kg). It also boasts the largest area under cotton cultivation, contributing around 11% of the world’s cotton production from 20% of the area.

Despite having the largest cotton cultivation area globally, India’s output ranks third due to its low average yield of 300 kg per hectare, compared to the world average of 550 kg per hectare.

Cotton cultivation in India spans from March to September, with harvesting taking place from September to April. The peak marketing season for cotton is from November to March.

Cotton serves as a vital raw material for India’s textile industry, valued at Rs. 1,50,000 crores, which contributes nearly 20% to the nation’s total industrial production and employs over 15 million people. Moreover, cotton-related exports generate foreign exchange earnings of $10-12 billion annually.

More than 75% of the total fiber converted into yarn by spinning mills in India comes from cotton, accounting for 58% of the country’s total textile fabric production.

MARKET INFLUENCING FACTORS

The fluctuation in cotton output is heavily influenced by weather conditions and pest attacks, especially considering that only one-third of the area under cotton cultivation has irrigation facilities.

Cotton prices typically firm up from April onward after more than 80% of the annual production is sold by March 31. The government of India sets the Minimum Support Price for cotton, with agencies like the Cotton Corporation of India and Maharashtra State Co-operative Cotton Growers’ Marketing Federation procuring cotton at this rate. However, market forces ultimately determine prices, with imports and exports also playing a significant role.

WORLD COTTON SUPPLY AND DISTRIBUTION