Project on Export performance of India

Click to edit Master subtitle style Indian cotton Industry

Presented By T.Rakeswar Patra Enrolment No.011103012 7/30/12 PGPIB03

Brief Introduction
Cotton was an essential staple fabric, which was needed in almost every work of life.
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Cotton is one of the principal crops of India and is the major raw material for domestic textile industry.
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The Indian Cotton Industry provides sustenance to millions of farmers as also the workers involved right from processing to trading of cotton.
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In 1854, James Landon established the Broach Cotton Mill, which was the first successful cotton mill in Bombay.
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Continued
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The Indian textile industry consumes a diverse range of fibers and yarn, but is predominantly cotton based.

By 1883, seventy-nine cotton industries were in operation, as Bombay took the industrial lead.

The Government of India had liberalized raw cotton exports since July 2001.

Exports of cotton from the country are under Open General License (OGL) since July 2001.
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The average national yield has been almost doubled to 560 kg per hectare, climbing from around 300 kg per hectare as recently as 2008/09.
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Today Cotton crop contributes about 14 16% to the total agricultural-crop in India.
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India has the largest area cotton cultivation with 9 million hectares in the world constituting 26% of total world cotton area.
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60 million people including 4.5 million farmers in India are depended on cotton production to earn their livelihood. 7/30/12
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Market Capitalization Geographical Distribution It contributes about 14% to the industrial production, 4% to the GDP and 14.42% to the country's export earnings. Punjab, Haryana, Rajasthan, Maharashtra, Madhya Pradesh, Gujarat. Andhra Pradesh, Karnataka and Tamil Nadu India presently produces 4.59 million tonnes of cotton with 27 million bales of 170 kgs each which constitutes 18% of the world cotton production

Percentage in World Market

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Cotton Exports from India

Qty. (in lakh bales of Value (in Rs. crores) 170 kgs each) 5267.08 58.00 8365.98 88.50 35.00 83.00 49.50 3837.13 9578.20 NA

Year 2006-07 2007-08 2008-09 2009-10 2010-11

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Export performance of top 5 countries

1100000 1000000 900000 800000 700000 600000 Value in Rs. Lakh 500000 400000 300000 200000 100000 0

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PRODUCTION, CONSUMPTION AND EXPORT OF COTTON

(Lakh bales of 170 kg. each)

Year

Production (lakh bales) (As per DOCD) (As per CAB) 179.00 243.00 241.00 280.00 307.00 290.00

ConsumptionExport by mills

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10(E)

137.88 170.02 189.27 240.40 243.14 258.25

150.39 163.98 180.10 194.89 217.21 210.00

12.11 9.14 47.00 58.00 88.50 35.00

DOCD - Directorate of Cotton Development, Ministry of Agriculture CAB - Cotton Advisory Board E - Estimated by Cotton Advisory Board

Source:

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Export performance of cotton product

12 10 8 Values in Rs. Lacs 6 4 2 0

Source:

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Export performance of cotton

5000

Values in Rs. Crores

0 Year

Source:

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Total export percentage in various cotton products

HSCode Commodity

Values in 2009-2010 percentage Rs. Lacs

938,875.44 14,320.53 512.3 4,305.41 731,445.42

5201COTTON, NOT CARDED OR COMBED 5202COTON WAST(INCL YARN WAST & GRNTED STOCK) 5203COTTON CARDED OR COMBED 5204COTON SEWNG THRED W/N PUT UP FOR RETL SALE 5205COTN YRN(OTHR THN SWNG THRD)CNTNG 85% OR MORE BY WT OF COTON NT PUT UP FR RETL SALE 5206COTON YRN(OTHR THN SEWNG THRD)CONTNG COTON 5207COTTON YARN(OTHER THAN SEWING THREAD) PUT UP FOR RETAIL SALE 5208WOVN FBRCS OF COTON CONTNG>=85% BY WT OF COTON WEGHNG NT MORE THN 200 G/M2 5209WOVN FBRCS OF COTTON, CONTNG >=85% COTN BY WT WEIGHING>200 GM PER SQM 5210WOVN FBRCS CONTNG<=200G/M2 5211WOVN FBRCS OF COTON,CONTNG200 G/M2 5212OTHER WOVEN FABRICS OF COTTON 52COTTON.

43.42 0.66 0.02 0.2 33.82 0.25 1.04 12.85 5.27 0.30 0.50 1.67 100

5,341.63 22,549.85 277,760.58 113,973.00 6,522.39 10,698.38 35,991.54 2,162,296.47

Source-

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Total export percentage in various cotton products

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Government Policies
General rate of Central Excise Duty is reduced from 10% to 8%.
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Rate of Service Tax on taxable services is reduced from 12% to 10%.

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According to textile industry, cotton price in India are currently at all time record high in spite of a bumper crop of 295 lake bales during cotton year 2009-10(oct-dec).
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Shankar-6 which our standard cotton was being sold at around `23000 a candy (355kg) at the beginning of the year, but it is now being sold at 7/30/12
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THANK YOU!!!

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