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KAPAS

Kapas

General Characteristics

Kapas is unginned cotton or thewhite fibrous substance covering the seed that is obtained from the cottonplant.

Global Scenario

The world cotton area andproduction are estimated at around 30-31 million hectares and 20 million tonsrespectively.

The biggest cultivators of cottonare America, India, China, Egypt, Pakistan, Sudan and Eastern Europe, withChina, US and India being the three largest producers of cotton.

US has a considerable share inworld exports. India and China both fall short of their domestic requirementand are net importers.

Among the consumers China leadsthe way being followed by India, Pakistan, US and Turkey.

World Cotton Supply And Distribution

2003/04                2004/05                2005/06                                2003/04                2004/05                2005/06

Million Tons        Million Bales

Production          20.430   22.58     21.99                     93.83     103.7     101.0

Consumption     21.145   21.51    21.86                     97.12     98.8        100.4

Exports 7.129     6.58        6.93                        32.74     30.2        31.8

Ending Stocks    7.996     9.07        9.20                        36.73     41.6        42.3

Indian Scenario

India with an annual productionof 15-16.5 million bales (1 bale=170 kg) is the World s third largest cottonproducer. India also has the largest area under cotton. India produces around11% of the world s cotton from 20% of the area.

The Ministry of Agricultureestimates India s cotton production in 2003-04 at 123.9 lakh bales. However,other agencies peg the production at 140-160 lakh bales.

Despite having the largest areaunder cotton in the world, India ranks third in world output of cotton due toits abysmally low average yield of 300 kg against a world average of 550 kg perhectare.

Although cotton is cultivated inalmost all the states in the country, the 9 states of Maharashtra, Gujarat,Andhra Pradesh, Madhya Pradesh, Punjab, Haryana, Rajasthan, Tamil Nadu andKarnataka account for more than 95% of the area under and output.

In India cotton is sown duringMarch to September and harvested during September to April. The peak marketingseason for the crop is during November to March.

Cotton is the most important rawmaterial for India s Rs. 1,50,000 crores textile industry, which accounts fornearly 20% of the total national industrial production and provides employmentto over 15 million people.

It also accounts for more than30% of exports, making it India s largest net foreign exchange industry. Indiaearns foreign exchange to the tune of $10-12 billion annually from exports ofcotton 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 Indiaand 58% of the total textile fabric materials produced in the country.

Market Influencing Factors

Only one-third of the area isunder irrigation, and this causes the cotton output to vary considerably fromyear to year in response to the vagaries of weather and pest attacks.

More than 80 percent of thecotton produced is sold out by March 31 every year and the price starts firmingup from April and starts easing only in September when the new crop startsarriving in the market.

The Government of India fixes theMinimum Support Price for cotton and several Government agencies like CottonCorporation of India, Maharashtra State Co-operative Cotton Growers  Marketing Federation procure cotton at thisprice. This sets the trend for the price initially. But the industry involveslarge number of players and the market forces determine the price soon.

The imports of cotton into thecountry and exports from the country.

Source:- www.mcxindia.com

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