In general, the conditions required for the cultivation of cotton are met within the seasonally dry tropics

and subtropics in the Northern and Southern hemispheres, but a large proportion of the cotton grown today is cultivated in areas with less rainfall that obtain the water from irrigation. India was the first country in the world to commercialize cotton hybrids. The leading exporters of cotton are USA, Uzbekistan, India, Brazil and Burkina Faso

Cotton is a soft, fluffy staple fiber that grows in a boll, or protective capsule, around the seeds of cotton plants of the genus Gossipier. The fiber is almost pure cellulose. Under natural conditions, the cotton bolls will tend to increase the dispersion of the seeds. The plant is a shrub native to tropical and subtropical regions around the world, including the Americas, Africa, and India. The greatest diversity of wild cotton species is found in Mexico, followed by Australia and Africa

Gossypium hirsutum upland cotton, native

to Central America, Mexico, the Caribbean and southern Florida, (90% of world production) Gossypium barbadense known as extralong staple cotton, native to tropical South America (8% of world production) Gossypium arboreum tree cotton, native to India and Pakistan (less than 2%) Gossypium herbaceum Levant cotton, native to southern Africa and the Arabian Peninsula (less than 2%)

1 thread = 55 inches (about 137 cm) 1 skein or rap = 80 threads (120 yards or about 109 m) 1 hank = 7 skeins (840 yards or about 768 m) 1 spindle = 18 hanks (15,120 yards or about 13.826 km

The largest producers of cotton in the world are China, India, USA, Pakistan, Uzbekistan, Brazil and Australia. During the year, 200607, total world production of cotton is 26,640 thousand tons. Largest producer of cotton is China, followed by India and U.S.A. (Table 17.1) Table 17.1: Showing area, production and productivity of major cotton growing countries

250

Cents per Lb

200

China Cotton Price China Polyester

150

A Index

100

50

0 08 09 10 11 12 13

China United States India Pakistan Brazil Turkey Greece Australia Syria Mali

Steady increase in India's annual production Have produced 31.2 million bales of cotton from an acreage of 11.16 million hectares . Has the largest area in the world under cotton cultivation Major exporter of cotton Mostly imports Long and Extra Long Staple (ELS) cotton from the US States of Gujarat, Maharashtra and Andhra Pradesh are the major producers of cotton

Adoption of improved varieties. Integrated water and nutrient management. Integrated pest and disease management

Launched on 4th oct 2011 Trading volume of 9,600 bales valued at Rs 17.73 crore. Open interest was 1,575 bales on the very first day The trading unit is 25 bales. Tick size of the contract will be Rs 10 a bale. Delivery centers through out the states of India

120 100 80 60 40 20 Pakistan

Cents per Lb India China

0
07 08 09 10 11 12 13

Prices have seen sharp spikes probably four or five times Rates of Sankar-6 variety of cotton rose to a high of Rs 67,000 a candy The ICE moved up to a historic high of $2.27 a pound. Rates have declined by nearly 50 per cent Initially banned cotton exports in 2010 Subsequently opened it up with restrictions.

80 nations cultivating the crop Top three consumers -China, India, and Pakistan 4 largest cotton-producing countries - China, India, USA and Pakistan 7-8 million MT USA - largest exporter of cotton Global trade in raw cotton in 2010-11- 7.7 million MT

Prices have spiked significantly over the last 2 years Slight expected decline in worldwide production from 26.2 to 25.9 million tons Global consumption would leave the world cotton stocks down by 6% to 11.3 million tons China have steadily increased and is expected to drive a 5% increase in global imports

Export potential of cotton is discussed region / ASEAN countries ASEAN countries imported 1,059,967 tons during 2006. There is a decrease of 3% in demand over 2003. The largest importers in ASEAN countries are Indonesia (4,63,205 tons), Thailand (4,22,042 tons) and Vietnam (1,19,021 tons).Indias exports to these countries are approx 12% of their requirements, exporting 50,534 tons to Indonesia, 44,478 tons to Thailand and 33,670 tons to Vietnam and negligible quantities to Philippines and Malaysia areas wise in the following paras.

Korea Republic of Korea imported 216268 tons of cotton during 2006; however India exported 6999 tons of cotton during 2006. The other exporters were U.S.A (83,944 tons), Australia (53,458 tons) and Brazil (40,091 tons).Inspite of the fact that India is supplying cotton at much competitive prices over U.S.A and Australia and India is also nearer to Korea location wise compared to U.S.A and Brazil, then even Indias export is very less. India should make sincere efforts for getting a larger share of Koreas imports of cotton.

China China imported 3,641,417 tons of cotton during 2006 whereas India exported only 465388 tons of cotton during 2006. The major competition is from U.S.A, Uzbekistan and Australia. U.S.A is the largest exporter to China and India is second largest exporter

JAPAN
Japan imported cotton to the tune of 1, 35,574 tons during 2006. However, India did not export any quantity of cotton to Japan. It will be appropriate to explore the exports of Indian cotton to Japan.

Documents related to goods a) Invoice b) Packing List c) Certificate of origin b) Documents related to shipment a) Mate Receipt b) Shipping Bill c) Bill of handing d) Airway Bill c) Documents related to Payment a) Letter of Credit (L/C) b) Bill of Exchange d) Documents related to quality of goods a) Phytosanitary Certificate b) GLOBALGAP Certification c) Health Certificate

Cost estimates for exports of cotton from India (as per information collected during 2008) (a) Procurement price*: Approx. price (Rs. /kg) : 66.57 to 71.62*Price of cotton varies according to variety, month of procurement(b )Charges for packing, transport etc.(below in table): Table 17.8: Charges for packing, transport, etc. Particulars Rs./kg Handling, packing and transport to port 3.08 to 5.05

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