Exploring the woollen wear market and its emerging trends and challenges
COTTON: THE ROAD AHEAD
Around 75 per cent of spun yarn in the country is being produced from cotton. Availability of good quality cottonseed round the year has made India the largest cotton exporter in the world. This is all thanks to the production boost India is getting from home-grown cotton.
According to the latest reports, the Government has estimated that the cotton consumption for eight months starting from October 2017 going up to May 2018 has been 216 lakh bales at an average of 27 lakh bales per month. On the other hand, the export shipment until May 31, 2018, has been estimated at 62 lakh bales. Favourable MSP rates, availability of high quality cottonseed and an estimated 13 per cent increase in the production area has successfully jolted the cotton production and trade to a new high. As per estimations and research by the Southern India Mills’ Association (SIMA), the Indian cotton textile value chain has the potential to achieve 12 per cent Compound Annual Growth Rate (CAGR) as against six per cent CAGR achieved until now.
However, the problem ahead is that the cotton industry will have to keep evading the growth of pests and weeds. In case this goes out of hand and the overall production reduces, then crimping of cotton yields will shrink India’s trade route as well. So, to let the situation stay in India’s favour so that the price of cotton too stays within limit, the entire supply chain has to work towards it and cross over all the hurdles one at a time.
AVAILABILITY OF GOOD QUALITY COTTONSEED ROUND THE YEAR HAS MADE INDIA THE LARGEST COTTON EXPORTER IN THE WORLD.
The details of imports and exports of cotton products for the year 2017-18 (provisional) are given as under: