India’s Cotton Production Trend
India’s cotton production in 2020-21 (Oct-Sep) witnessed a drop of 1.37%, to 360 lakh bales, compared to 365 lakh bales in 2019-20 season. Central Zone – which includes Gujarat, Madhya Pradesh and Maharashtra – remains the highest cotton producing zone. But growth-wise northern zone has done slightly better. Both central and southern zone perceived a negative growth of 2.04% in 2020-21.
State-wise, Gujarat remains the topmost state with a production of 90 lakhs bales. Maharashtra is the second largest with 84 lakh bales of cotton. Orissa is the lowest cotton producing state with just 4.5 lakh bales of cotton. In 2019-20 all the zones perceived a positive growth, while in the last season (2020-21) central and southern zones witnessed a decline in the production.
The north zone’s cotton production grew by 0.7% to 65.50 lakh bales of cotton in 2020-21 over the previous season. The zone stakes a share of 18% in the total cotton production. The productivity of cotton production declined by 14.1% to 548.25 kgs per hectare.
Rajasthan remains the topmost state in the zone and has witnessed a growth of 10.34% in its production of cotton. The production in the state totalled to 32 lakh bales of cotton and produces around 49% in the zone and 9% in the total cotton production of India. The state gave a yield of 673.27 kg per hectare in 2020-21 season, with a rise 3.79% over the previous season. Rajasthan has gained the highest growth in crop productivity within the zone.
Haryana, the second largest cotton producing state in the zone, has been improving its production every season. But in 2020-21 season, the state’s cotton production declinedby 15.1% to 22.50 lakh bales of cotton. The state stakes a share of 34% in the zone and 6% in the total cotton production of India. The productivity growth too declined by 14.9% in 2020-21 over the previous season.
After two consecutive seasons, Punjab finally witnessed a growth 15.7% in the production of cotton. The total production of cotton in Punjab totalled to 11 lakh bales in 2020-21, while previous the production totalled to 9.50 lakh bales. The state stakes a share of 17% in the zone and 3% in the total cotton production of India. Punjab yielded 373.25 kgs cotton per hectare.
Central zone accounts of the highest share of 53% of the total cotton production of India. In the season (2020-21) the zone’s production totalled to 192 lakh bales of cotton and witnessed a drop of 2% over the previous season. The zone accumulated a yield of 456.25 kgs per hectare with a growth of 6.7%.
Gujarat remains the highest cotton producing state in the zone as well as in the country. In 2020-21 season, the state produced 90 lakh of bales of cotton and perceived a growth of 1.1% over the previous season. The state stakes 47% in the zone and 25% of the total cotton production of India. Gujarat gave a yield of 671.35 kgs per hectare with growth of 6.75%.
Maharashtra, being the second largest producing state in the country and central zone, has perceived a negative growth of 3.4% to 84 lakh bales of cotton in 2020-21 over the previous season. The state stakes 44% in the zone and 23% in the total cotton production of India. The state gave a yield of 333.18 kgs per hectare with a growth of 1.1%.
Madhya Pradesh has too declined by 10% with a production of 18 lakh bales of cotton. The state holds a share of 9% in the zone and 5% in the total cotton production of India. Here the productivity has dropped by 0.6% to 519.52 kgs per hectare.
The southern zone’s cotton production growth has dropped by 2% to 96 lakh bales of cotton in 2020-21. The zone stakes a share of 27% in the total cotton production of India. South zone registered a yield of 410 kgs per hectare in 2020-21, with a decline of 7.1%.
Telangana leads the board in this region. The state produced 51 lakh bales of cotton in 2020-21 season, 5.5% lower than the previous season. Around 53% production of cotton in the zone is cultivated by Telangana, while the state shares 14% in the total production of cotton in India and registered a yield of 353.73 kgs/hectare.
Andhra Pradesh which stakes 18% in the zone and 5% of India’s total production of cotton has witnessed a fall of 5.5% in the last season of cotton. The cotton production in the state totalled to 17 lakh bales. The state productivity has improved with a growth of 2.3% to 476.90 kgs/hectare in 2020-21 over the previous season.
Karnataka is the second largest state in the zone. Cotton production in the state perceived a growth of 10% totalling to 22 lakh bales, accounting for a share of 23% in the zone and 6% in India’s total cotton production. Karnataka has perceived productivity growth of 17.5% with a yield of 488.89 kgs/hectare.
No change has been registered for the cotton production in Tamil Nadu. The production of cotton remains at 6 lakh bales. The state accounts for a share of 6% in the zone and 2% in the cotton production of India. The productivity registered a growth of 9.7% with a yield 658.1 kgs/hectare.
India’s Cotton Exports
India’s cotton (not carded or combed) exports have witnessed a rise of 105.7% in the first nine months (Jan-Sep) of 2021 totalling to US$ 1898.10 million compared to the corresponding period of last year (CPLY). India increased its raw cotton volumes by 56.1% in Jan-Sep 2021 with a quantity of 9751.05 million kgs. With increase of volume being exported to the world, the unit value of realisation (UVR) has increased by 31.7% for the same period. In January-September 2021, raw cotton was traded at US$ 1.95 per kg, while in the CPLY, the cotton was exported at US$ 1.48 per kg on average.
Bangladesh remains the top export market for India’s raw cotton. Cotton exports to the country perceived a growth of 37.19% to US$ 907.32 million in 2021 (Jan-Sep) over CPLY. Around 445.56 million kgs was shipped to Bangladesh. The UVR registered to US$ 2.04 per kg of cotton in 2021, while in 2020 the trade price was US$ 1.53 per kg.
India’s cotton exports to China witnessed a rise of 160.4% to US$ 630.86 million in Jan-Sep 2021 over the CPLY. Around 336.29 million kgs of cotton was exported to the country during the same period and on an average the UVR increased by 27% to US$ 1.88 per kg.
Vietnam and Indonesia are important markets for Indian cotton exporters. The exports in 2021 (Jan- Sep) have soared over the previous year. Vietnam perceived a growth of 131.9% to US$ 184.7 million, while Indonesia registered a growth of 123% to US$ 103 million in 2021 (Jan-Sep) over the previous year.
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the increase in the Minimum Support Prices (MSPs) for cotton fibre for the new cotton season 2021-22.
On an average, medium staple cotton having a length of 24.5 to 25.5 mm has been priced at Rs 5726 per quintal, which in the previous season it was fixed at Rs 5515 per quintal. And for long staple cotton having a length of 29.5 to 30.5 mm on an average was priced at Rs 6025 per quintal, in the previous season the price was Rs 5825 per quintal.
During global pandemic in the last two cotton seasons (2019-20 and 2020-21), CCI procured around 1/3rd of the cotton production in the country i.e. about 200 lakh bales and disbursed more than Rs 55,000 crore directly in the bank accounts of around 40 lakh farmers.
For current cotton season i.e. 2021-022, CCI has already made all adequate arrangements in all 11 major cotton growing states including deployment of manpower at more than 450 procurement centres, so as to meet any eventuality of MSP operations.