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Cotton exports in India

Article  in  International Journal of Commerce and Management · September 2017

DOI: 10.19080/ARTOAJ.2015.01.55555

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International Journal of Commerce and Management Research
ISSN: 2455-1627
Impact Factor: RJIF 5.22
www.managejournal.com
Volume 3; Issue 9; September 2017; Page No. 58-60

Cotton exports in India

1
V Palanisingh, 2 V Abdul Salahudeen, 3 Dr. TR Gurumoorthy
1, 2
Ph.D. Research Scholar, Department of Commerce, Alagappa University, Karaikudi, Tamil Nadu, India
3
Professor, Department of Commerce, Alagappa University, Karaikudi, Tamil Nadu, India, India

Abstract
Cotton plays an important role in the development of the Indian economy. The Indian textile Industry is primarily cotton based. In
this paper, a modest attempt has been made to study the Cotton Consumption by Organized Sector Textile Mills (Non-SSI Mills)
and Small Scale Spinning Mills (SSI) Units, Cotton production of India, Cotton Export Performance of India, and destination of
Indian Cotton exports. The secondary data has been collected from Agriculture Processed Food Products Export Development
Authority (APEDA) and Cotton Export Promotion Council. Cotton production is decreasing trend and it is registered a CAGR of -
0.74 per cent. Yield per Hectare is increasing trend and it is registered CAGR of 1.74 per cent. Cotton exports in India is increasing
trend and it is registered a CAGR of 11.36 per cent. The total export is fluctuating trend and it is registered a CAGR of 6.99
percent. The share of Cotton export is increasing trend and it is registered a CAGR of 4.08 per cent. Bangladesh is the major
destination of Indian Cotton Exports and it is registered a CAGR of 16.92 per cent, followed by Pakistan.

Keywords: cotton, consumption, exports

Introduction 2. Cotton Yarn: The world’s most renowned Indian Cotton

Cotton is one of the principal crops of the country and is the Yarns are available as greige, bleached, mercerized,
major raw material for domestic textile industry. It provides gassed, twisted, dyed or an endless range of fashion yarns
sustenance to millions of farmers as also the workers involved like mélange, stretch, blends, high twist and so on to meet
in cotton industry, right from processing to trading of cotton. the different applications in fashion, clothing, home
The Indian textile industry consumes a diverse range of fibres textiles, hosiery and industrial fabrics. India can meet
and yarn, but is predominantly cotton based. Indian Textile every customer requirement whether large or small,
Industry has an overwhelming presence in the economic life regular or customized, premium or basic. The current
of the country. Apart from providing one of the basic scenario, Indian yarn is widely accepted in International
necessities of life, the textile industry also plays a pivotal role
markets as the exporters here regularly meet the needs of
through its contribution to industrial output, employment
Importers with unmatched efficiency and economy in
generation and the export earnings of the country. It
countries like USA, Italy, Spain, Japan, China, South
contributes about 14% to the industrial production, 4% to the
GDP and 13% to the country’s export earnings. The textile Korea, Taiwan, Bangladesh, Vietnam etc [2].
sector is the second largest provider of employment after 3. Cotton Woven Fabrics: India has today transformed into
agriculture. Hence, growth and all around development of a high-tech global manufacturing hub for exquisite
cotton and cotton industry has a vital bearing on the overall fabrics. India’s strengths in the areas of organic, healthy
development of the Indian economy. textiles and eco-friendly fabrics are now recognized
globally. India’s fabric range is vast and diverse from
Cotton Products fashion fabrics like voiles, prints and embroideries to a
1. Cotton Fibre: India is the world’s largest producer of variety of shirting, heavy bottom weight and denim
organic cotton and has an annual production of over fabrics, wide width range for home textiles, industrial
75,000 tons, undoubtedly encouraged by the increased use fabrics and high performance special fabrics, India has
of organic fibre in everything from personal care items them all. India is uniquely positioned as a provider of
(sanitary products, make-up removal pads, cotton puffs end-to-end sourcing solutions for finished garments,
and ear swabs), to home furnishings (towels, bathrobes, Madeups and other consumer products in cotton textiles.
sheets, blankets, bedding), children’s products (toys, With an uncompromising commitment to design and
diapers), all kinds of apparel (including work wear, innovation, India today enjoys the trust of the world’s
sportswear and other uses), and even stationery and note leading retailers, premium brands and designers seeking
cards [1]. to differentiate their new collections in highly competitive

1 2
http://www.texprocil.org/cotton-fibre-accesed on 26/07/2017 http://www.texprocil.org/cotton-yarn- accessed on 26/07/17

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International Journal of Commerce and Management Research

global markets [3]. Table 2: Area, Production and Productivity of Cotton in India.
4. Cotton Home Textiles: Indian Home Textile products Area In lakh Production In lakh Yield kgs
have become synonymous with luxury, comfort, design Year
hectares bales of 170 kgs per hectare
innovations and high quality in all sophisticated 2011-12 121.78 367 512
international markets. With continuous investments in 2012-13 119.78 370 525
wide-width weaving, processing and specialized 2013-14 119.6 398 566
technology, India has acquired considerable strengths in 2014-15 128.46 386 511
this sector over the last decade. Indian home textile is one 2015-16 118.77 338 484
2016-17 105 351 568
of the fastest growing textile export segments from India
Average 118.90 368.33 527.67
and enjoys universal popularity even in the most CAGR (%) -2.44 -0.74 1.74
demanding markets like USA, EU and Japan [4]. Source: http://www.cotcorp.gov.in/statistics.aspx#area

Methodology The table 2 shows that area, production and yield per hectare
The study is based on secondary data. The data are collected during the period of 2011-12 to 2016-17. The cotton
from, Cotton Export Promotion Council, Agriculture & production area is decreasing trend it is decreased from
Processed Food Products Export Development Authority and 121.78lakh hectare in 2011-12 to 105lakh hectare in 2016-17
Reserve Bank of India (RBI). The period of study is 2011-12 and CAGR of -2.44 per cent. Cotton production is decreasing
to 2016-17. trend during the study period it is registered a CAGR of -0.74
per cent. Yield per Hectare is increasing trend it is increased
Table 1: Cotton Consumption by Organized Sector Textile Mills from 512kgs per hectare in 2011-12 to 568kgs per hectare in
(Non-SSI Mills) and Small Scale Spinning Mills (SSI) Units Qty.in 2016-17 and it is registered CAGR of 1, 74 per cent.
Lakh Bales.
Table 3: Cotton Exports in India.
Non-SSI mills SSI mills
Rs. in Billion
Average consumption Cotton Total Share of Cotton Exports in
Year Cotton Monthly Cotton Monthly Year
Exports Exports Total Exports
consumptio consumptio consumptio consumptio 2010-11 346.72 11429.22 3.03
n n n n 2011-12 430.73 14659.59 2.94
2011-12 223.58 18.63 22.12 1.84 2012-13 525.44 16343.18 3.22
2012-13 251.74 20.97 23.59 1.97 2013-14 670.99 19050.11 3.52
2013-14 268.03 22.34 25.2 2.1 2014-15 659.11 18964.45 3.48
2015-16 661.29 17144.24 3.86
2014-15(P)* 278.55 23.21 26.28 2.19
Mean 549.05 16265.13 3.34
2015-16 CAGR (%) 11.36 6.99 4.08
274 22.83 27 2.25
(P)* Source:
2016-17(P)* 275 22.92 28 2.33 https://www.rbi.org.in/scripts/PublicationsView.aspx?id=17262
Average 261.82 21.82 25.37 2.11
CAGR 3.510 3.514 4.007 4.013 The table 3 reveals that cotton exports in India, it is increasing
Source: http://www.cotcorp.gov.in/statistics.aspx?pageid=3#cotton* trend and it is increased from Rs.346.72 billion in 2010-11 to
(P) P* Provisional Rs.661.29 billion in 2015-16 and it is registered a CAGR of
11.36 per cent. The total export is fluctuating trend and it is
The table 1 shows that Cotton Consumption of Organised registered a CAGR of 6.99 percent. The share of Cotton
Sector Textile Mills and Non-SSI units. Cotton consumption export is increasing trend and it is registered a CAGR of 4.08
of Non-SSI Mills are increasing trend, it is increased from per cent.
223.38lakh bales in 2011-12 to 275lakh bales in 2016-17 and
it is registered a CAGR of 3.510 per cent. The monthly Table 4: Destination of Indian Cotton Export Rs. in Crore
Consumption of Non-SSI is increasing trend, it is increased Year Bangladesh Pakistan China Vietnam Indonesia
from 18.63lakh bales in 2011-12 to 22.92lakh bales in 2016- 2011-12 2048.29 325.22 17273.69 394.63 348.38
12 and it is registered a CAGR of 3.514 per cent. The 2012-13 3316.09 2141.73 12071.99 904.58 321.9
Consumption pattern of SSI mills are increasing trend, it is 2013-14 4266.05 2090.54 11805.22 1344.3 614.28
increased from 22.12lakh bale in 2011-12 to 28lakh bales in 2014-15 3544.76 645.55 4542.98 1488.38 251.8
2015-16 4474.67 4312.27 1289.39 1112.42 491.7
2016-17 and it is registered a CAGR of 4.007 per cent and
Average 3529.97 1903.06 9396.65 1048.86 405.61
monthly consumption also increasing trend it is registered CAGR 16.92 67.69 -40.49 23.03 7.13
CAGR of 4.103 per cent. Source: Directorate General of Commercial Intelligence and
Statistics (DGCIS)

The table 4 shows that major destination of Indian Cotton

3
http://www.texprocil.org/cotton-fabrics- accessed on 26/07/17 Exports. Bangladesh is the major destination of Indian Cotton
4
http://www.texprocil.org/cotton-home-textiles- accessed on 26/ Exports, it is increased from Rs. 2048.29crore in 2011-12 to

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International Journal of Commerce and Management Research

Rs.4474.67crore in 2015-16 and it is registered a CAGR of

16.92 per cent, followed by Pakistan it is increased from
Rs.325.22crore in 2011-12 to Rs.4312.27crore in 2015-16,
China is a declining trend for the it is decreased from
Rs.17273.69crore in 2011-12 to Rs.1289.39crore in 2015-16
and it is registered a CAGR of -40.49 per cent. Cotton exports
in Vietnam is increasing trend and it is registered a CAGR of
23.03 per cent, Indonesia is registered a CAGR of 7.13 per
cent.

Conclusion
Cotton industry plays vital role for the development of Indian
economy. Cotton consumption of Non-SSI Mills are
increasing trend, and it is registered a CAGR of 3.51per cent.
The monthly Consumption of Non-SSI is increasing trend, and
it is registered a CAGR of 3.51 per cent. The Consumption
pattern of SSI mills are increasing trend, and it is registered a
CAGR of 4.00 per cent and monthly consumption also
increasing trend it is registered CAGR of 4.10 per cent. Cotton
production is decreasing trend and it is registered a CAGR of -
0.74 per cent. Yield per Hectare is increasing trend and it is
registered CAGR of 1.74 per cent. Cotton exports in India is
increasing trend and it is registered a CAGR of 11.36 per cent.
The total export is fluctuating trend and it is registered a
CAGR of 6.99 percent. The share of Cotton export is
increasing trend and it is registered a CAGR of 4.08 per cent.
Bangladesh is the major destination of Indian Cotton Exports
and it is registered a CAGR of 16.92 per cent, followed by
Pakistan.

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