MBA Aspirants are expected to know markets of established Brands. This helps them to understand industry for which they are dreaming to join in future. Today, you will read on Indian Cotton Industry
India is the second largest producer of cotton in the world, after China. Experts predict that India’s cotton harvest may increase from 36.5 million bales of 170 kilograms in 2012-2013 to 37.5 million bales of 170 kilograms in 2013-2014. At present, India produces 4.59 million tons of cotton, and this constitutes 18% of the total cotton production in the world.
Cotton in India is produced in three zones – the northern zone, the central zone and the southern zone. The northern zone comprises Punjab, Haryana, and Rajasthan; the central zone comprises Maharashtra, Gujarat, and Madhya Pradesh; and the southern zone comprises Andhra Pradesh, Tamil Nadu and Karnataka.
Cotton is one of the principal crops produced in India and it is one of the most important raw materials in the domestic textile industry, which is why cotton fields are widespread in India and millions of people are employed in the Indian cotton industry.
The Indian cotton industry not only provides employment to farmers but it also provides employment to workers in fabric manufacturing companies and textile companies, where workers are engaged in spinning, weaving, dyeing, designing, sewing, and tailoring of semi-finished products.
To ensure that the prices of cotton and its related products are competitive, and that the interests of cotton farmers are protected, the Indian government established the Cotton Corporation of India, under the Ministry of Textiles.
The Cotton Corporation of India was founded in 1970 under the Companies Act 1956, and it is the single largest cotton trading company in the world. It operates more than 300 procurement centres throughout India and helps in maintaining the quality of cotton and related products.
In 2002, Bt Cotton was commercialized in India and since then, the adoption of this technology has grown at a rapid pace. Today, close to 93% of the cotton sown in India is Bt Cotton.
Bt Cotton is essentially a variety of cotton that has been genetically modified to produce chemicals that are harmful to selective insects, which destroy cotton crops. Since these chemicals kill the larvae of moths and butterflies, flies and beetles, farmers who grow Bt Cotton can save on insecticides and still produce cotton of good quality.
Bt Cotton technology has attracted young farmers to India’s cotton industry, with more than 50% of the farmers coming from the lower middle age group in Punjab, Andhra Pradesh, and Maharashtra.
At the national level, Bt Cotton farmers have reported an average net profit of Rs 41,837 per hectare, with the highest profit recorded in Punjab at Rs 53,139 per hectare. In farms where Bt Cotton is produced, a substantial decrease of over 82% in insecticide sprays has been reported.
According to the India Meteorological Department, in 2013, India has witnessed the best rains in the last six years and this has given rise to a high yield of cotton. This year, India is expected to export 1.5 million bales of cotton and reduce its import volume from 1.6 million bales to 1.2 million bales.
The cotton industry in India is promising and with the advent of new technologies, more and more youngsters are making their way into the world of cotton farming.
The cotton industry in India is here to stay and if India manages to increase its export value of cotton in the years to come, we can easily become the largest producer of cotton in the world.