(As on 20.05.

2019)

Commodity Profile for Cotton- May, 2019

Contents

1. Cotton Estimates for India.....................................................................................................................2

2. Cotton Estimates for World...................................................................................................................2
3. Domestic Production.............................................................................................................................3
4. Global Production.................................................................................................................................3
5. Major Exporting and Importing Countries of Cotton in the World........................................................4
5.1 Major Exporting Countries in the World.......................................................................................4
5.2 Major importing Countries in the World.......................................................................................4
6. India’s Major Export Destinations........................................................................................................5
7. India’s Trade Flow during 2009-10 to 2014-15.....................................................................................5
8. Domestic Prices Movement...................................................................................................................6
8.1 Price Movement for Raw Cotton (Kapas) ....................................................................................6
8.2 Price Movement for Cotton (Lint).................................................................................................6
9. Movement of Domestic as well as International prices of Cotton.........................................................7
10. Minimum Support Price (MSP) for Cotton during 2009-10 to 2014-15................................................7
11. Future prices......................................................................................................................................8
12. Price Movement in Major Domestic Mandis.....................................................................................8
13. Cotton Arrivals in Major Domestic Mandis......................................................................................9
14. Trade Policy......................................................................................................................................9
14.1 Export policy.................................................................................................................................9
14.2 Import Policy.................................................................................................................................9

1|Commodity Profile for Cotton April, 2019

1. Cotton Estimates for India (Crop Year: October 2015 to September 2016)
(Unit: Lakh Bales)
Table 1: Cotton Stock, Crop Size, Trade, and Consumption
2016-
2017-18 Particular 2018-2019 (P) Source
17
Supply
36.44 47.81 Opening stock 50.08 Textile Commissioner
325.77 339.15 Crop Size 300.87# DAC
28.29 26.41 Total Imports 5.94** DoC
390.5 413.37 Total Availability 356.89
Demand
262.66 288 Mill Consumption 273.62 Textile Commissioner
26.2 27 Small-Mill Consumption 26.76 Textile Commissioner
17.5 19 Non-Mill Consumption 18.16 Textile Commissioner
306.36 334 Total Consumption 318.54 Textile Commissioner
53.59 58.01 Total Exports 39.02** DoC
Sources: Department of Agriculture and Cooperation (DAC),Department of Commerce (DoC), Textile Commissioner.
# As per 2nd Advance Estimates for 2018-19, DES of 28.02.2019
For preparing estimated figure for 2018-19, Opening Stock, Mill Consumption, Small Mill Consumption, Non-mill
Consumption have been taken for last three years’ average.

**Export and Import is for October-March, 2018-19.

2. Cotton Estimates for World

(Unit: lakh Bales)
Table2: Global Cotton Stocks, Production, Consumption & Export
Year Beginning August 1 2015-16 2016-17 2017-18 2018-19*
Beginning stock 1369 1157 1030 1038
Cotton Production 1231 1366 1585 1523
Cotton Consumption 1454 1491 1578 1582
Cotton Exports 443 485 524 539
Ending stocks 1157 1030 1038 979
Source: USDA*: Estimated Figure

 During 2015-16 and 2017-18, the world production has increased tremendously by 22.3 percent
(from 1231 Lakh Bales to 1585 Lakh Bales), export by 15.39% (from 443 Lakh Bales to 524 Lakh
Bales) followed by consumption which has increased by 7.9 percent (from 1454 Lakh Bales to
1578 Lakh Bales).
 Estimated figure for consumption, production and export has increased in 2017-18. This is due to
less stock available during the last two years and higher export demand.
 Based on USDA database the world export may increase by around 15 lakh bales in 2018-19 over
the exported value registered in 2017-18. Increase in the import demand from China recently of 8

2|Commodity Profile for Cotton April, 2019

 lakh bales and less stocks in the markets are the contributing factors in the increase of total exports
during 2018-19
.
3. Domestic Production

Figure 1: Domestic Cotton Production

375
325
275
225
Qty in Lakh Bales

175
125
75
25
2007- 2008- 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016- 2017- 2018-
08 09 10 11 12 13 14 15 16 17 18 19*
Pro 258.84 222.76 240.22 330 352 342.2 359.02 348.05 300.05 325.77 339.15 300.87
duc-
tion

Source: DES, Agriculture, Cooperation& Farmers Welfare 1 Bale=170 Kgs

 The projected figure for domestic production in 2018-19 is less than that of the previous
year due to unsuitable dry weather conditions in the major producing states this season.

4. Global Production

Figure 2: Global Production

40.00
35.00
30.00
25.00
Lakh Bales

20.00
15.00
10.00
5.00
0.00
India China United States Pakistan Brazil Uzbekistan Other

2016/17 2017-18 2018-19*

Source: United State Department of Agriculture (USDA).*: Advance estimation by USDA

3|Commodity Profile for Cotton April, 2019

  China and India were the top two global producers of cotton in 2017-18 followed by USA
and same trend is following this year.

5. Major Exporting and Importing Countries of Cotton in the World

5.1 Major Exporting Countries in the World

Figure 3: Major Exporting Countries

250

200

150
Lakh Bales

100

50

0
USA India Australia Brazil Greece Burkina Benin Côte Cameroon Turkey
Faso d'Ivoire

2015 2016 2017

Source: Comtrade

 USA was the major exporting country in the world followed by India and Brazil in 2017.

5.2 Major importing Countries in the World

Figure 4: Major Importing Countries

100
90
80
70
60
Lakh Bales

50
40
30
20
10
0
Viet Nam China Turkey Indonesia Pakistan India Mexico Rep. of Other Egypt
Korea Asia, nes

2015 2016 2017

S
ource: Comtrade

4|Commodity Profile for Cotton April, 2019

  Vietnam was the largest importing country in the world followed by China and Turkey in
2017. .

6. India’s Major Export Destinations

Figure 5: India's Major Export Destinations

5,000.00

4,000.00

3,000.00
Value in Rs crore

2,000.00

1,000.00

0.00
PR RP N
IR
RE
P
SI
A
SI
A N D AN RP KE
Y
H P E AY ILA IW A R
ES A TA SO
C
ON AL A TA RE TU
AD IN KIS D TH KO
G L CH PA AM IN M
N N
BA ET
VI

2017-18 2018-19

Source: Department of Commerce

 India’s major Export destinations in 2018-19 were Bangladesh, China & Pakistan.
 Countries such as Bangladesh, China, Pakistan, Vietnam and Indonesia are scaling up
their cotton imports from India to meet the requirements of their export-focused garment
industries.

7. India’s Trade Flow during 2014-15 to 2018-19

Table 3: Trade Flow for India
Lakh Tonnes Lakh Bales
Year
Export Import Export Import
2014-15 11.43 2.58 67.2 15.22
2015-16 13.46 2.32 79.17 3.64
2016-17 9.11 4.81 53.59 28.30
2017-18 9.86 4.49 58.01 26.41
2018-19 11.4 2.98 67.24 17.52
Source: Department of Commerce
 India exported substantial quantity of cotton during 2013-14 to 2015-16 but gradually decreased
during in 2016-17 & 2017-18 due to increase in domestic cotton prices whereas imports have been
increased from last two years due to lower production. However, export has increased and import
has decreased in 2018-18
5|Commodity Profile for Cotton April, 2019
8. Domestic Prices Movement

8.1 Price Movement for Raw Cotton (Kapas) at major Centers between May, 2018 and May,
2019

Variety wise Kapas Price trend (Rs/Qtl)

7000

6500
Rajkot (BT)
6000 Ahmedabad (S-6)
Amravati (Mech-1)
5500 Hisar (BT)
5000

4500
8 8 8 8 8 8 8 8 9 9 9 9 9
-1 -1 -1 -1 -1 -1 -1 -1 -1 -1 r-1 r-1 ay-1
ay Jun -Jul Aug Sep Oct Nov Dec -Jan Feb a A p
3-
M 3- 3 3- 3- 3- 3- 3- 3 3- 3-M 3- 3-
M

Source: Textile Commissioner

 Prices for raw cotton (Kapas) in major markets are showing a mixed trend.

8.2 Price Movement for Cotton Lint at major centers between April, 2018 and April, 2019

Lint Price Trend at Key Centers

5200

5000
(Rs./ Maund (of 37.32 kg each)

4800

4600

4400

4200

4000
8 18 8 18 18 8 18 8 19 19 9 9 19
ay
-1
un- Jul-1
ug- ep- ct-1 ov- ec-1 an- eb- ar-1 pr-1 ay-
J 3- A S O N D J F A
3-
M 3- 3- 3- 3- 3- 3- 3- 3- 3-
M 3- 3-
M

Bhatinda Sirsa Abohar

Source: Textile Commissioner

6|Commodity Profile for Cotton April, 2019

 9 Movement of Domestic as well as International Prices of Cotton

International and Domestic Price Comparison

150000
145000
140000
135000
130000
125000
120000
115000
110000
105000
100000
7 7 7 7 7 7 7 7 7 7 7 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 9 9 9 9 9
pr-1 ay-1 un-1 ul-1 ul-1 ug-1 ep-1 ct-1 ct-1 ov-1 ec-1 an-1 an-1 eb-1 ar-1 pr-1 ay-1 ay-1 un-1 ul-1 ug-1 ug-1 ep-1 ct-1 ov-1 ov-1 ec-1 an-1 eb-1 eb-1 ar-1 pr-1
A M J J J A S O O N D J J F M A M M J J A A S O N N D J F F M A

Rs./Ton International prices (Cotlook A Index) Rs./Ton Domestic Prices ( Shankar-6)

Source: International Price –cotlook.com, Domestic Price- Textile commissioner

 Domestic Prices have been lower than International price since September, 2017.

10 Minimum Support Price (MSP) for Cotton during 2012-13 to 2016-17

(Unit: Rupees/Quintal )
Table 4: Minimum Support Price for Cotton
Staple Size 2014-15 2015-16 2016-17 2017-18 2018-19
Medium Staple Cotton 3750 3800 3860 4020 5150
Long Staple Cotton 4050 4100 4160 4320 5450
Source: Commission for Agricultural Costs and Prices (CACP)

 An increase in the Minimum Support Price (MSP) for both Medium as well as long staple size
cotton is recorded. This figure has increased tremendously since last 5 years by 37.33 percent for
medium staple and 34.56 percent for long staple cotton. The hike is made by the government to
speed up the exports and to increase farmer’s income.

7|Commodity Profile for Cotton April, 2019

11 Future prices
(Unit: Cents/Pound)

Table 5: Future Prices for Cotton

%
% Change
3_Apr_201 2_Feb_2019 4_Nov_2018 Chang
Date of 3_May_2018 over
3_May_2019 9 (1 month (3 month (6 month e over
Contract (Year Ago) previous
ago) ago) ago) a
year
month
1-May-19 74.78 77.05 74.93 81.63 84.45 -2.95 -11.45
1-Jul-19 75.68 77.77 76.21 82.67 84.5 -2.69 -10.44
1-Oct-19 74.27 76.67 74.45 79.6 81.3 -3.13 -8.65
1-Dec-20 74.45 76.25 74.12 78.87 79.59 -2.36 -6.46
1-Mar-20 75.03 76.68 75.36 -2.15
Source: Intercontinental Exchange (ICE).

 Future prices for cotton are expected to decrease over previous year.

12 Price Movement in Major Domestic Mandis

(Unit: Rupees/ Quintal)
Table 6: Price Movement in Major Domestic Mandis

% Change % Change
Markets April, 2019 March, 2019 April, 2018 (over previous (over previous
month) year)

Rajkot 6302.6 5551 5331 13.54 18.23

Surender Nagar NA 5300 NA - -
Amaravati 6353.1 5410 5095.6 17.43 24.68
Guntur NA NA NA NA NA
Warangal NA NA NA NA NA
Sirsa 4845.2 4341 4231.8 11.61 14.50
Bhatinda 4904.2 4394 4252.7 11.61 15.32
Ganganagar 4486 4200 NA 6.81 -
Source: Agmarknet

 Major domestic Mandis in India experienced an increase in prices in April 2019 over the
same period of the previous year due to lower arrivals this season (See Table 6).

8|Commodity Profile for Cotton April, 2019

13 Cotton Arrivals in Major Domestic Mandis
(Unit: Quintals)
Table 7: Cotton Arrivals in Major Domestic Mandis

April, 2018 % Change % Change

April, 2019 March,2019 (over (over
Markets
(cumulative) (cumulative) previous previous
(cumulative) month) year)

Rajkot 53500 41415 43770 29.18 22.23

Surender Nagar NA NA NA - -
Amravati 71275 314000 32400 -77.30 119.98
Guntur NA NA NA - NA
Warangal NA NA NA - NA
Sirsa 7225 15555 9265 -53.55 -22.02
Bhatinda 31620 77350 44540 -59.12 -29.01
Ganganagar 8030 22700 NA -64.63 -
Source: Agmarknet.

 Arrivals in April, 2019 in major domestic mandis like Sirsa, Bhatinda and Ganganagar
were less over the same period of the last year. This year major states were affected by
low rainfall and got attacked by pink bollworm which resulted in decline in arrivals.

14 Trade Policy

14.1 Export policy

Export of cotton is free without any restrictions.

Table 8: Export Policy

Exim Item Description Policy
Code
5201 Cotton neither carded nor combed Free
5202 Cotton waste (including yarn waste and garneted stock) Free
5203 Cotton, carded or combed Free
Source: Directorate General of Foreign Trade (DGFT)

14.2 Import Policy

9|Commodity Profile for Cotton April, 2019
Import of cotton is duty free without restrictions.

Table 9: Import Policy

Exim Item Description Policy
Code
5201 COTTON NOT CARDED OR Bound Standard Applied
COMBED Rate Rate Rate
5201 00 Cotton, not carded or combed:
Indian cotton: 100% 10% Nil
5201 00 11 Bengal deshi 100% 10% Nil
5201 00 12 Indian cotton of staple lengths 20.5 100% 10% Nil
mm (25/32”) and below (e.g.
oomras, yellow picking, Assam
comillas)
5201 00 13 Indian cotton of staple length 100% 10% Nil
exceeding 20.5mm (26/32”) but not
exceeding 24.5 mm (30/32”)
5201 00 14 Indian cotton of staple length over 100% 10% Nil
24.5mm (31/32”) to 28mm
5201 00 15 Indian cotton of staple length 100% 10% Nil
28.5mm (14/32”) and above but
below 34.5mm
5201 00 19 Indian cotton of all staple length 100% 10% Nil
34.5mm and above (112/32”)
5201 00 20 Cotton, other than Indian, of all 100% 10% Nil
staple length
5202 COTTON WASTE (INCLUDING
YARN WASTE AND
GARNETTED STOCK)
5202 10 00 Yarn waste (including thread waste) 100% 15% Nil
Other:
5202 91 00 Garnetted stock 100% 15% Nil
5202 99 00 Other 100% 15% Nil
5203 COTTON, CARDED OR
COMBED
5203 00 00 Cotton, carded or combed 150% 30% Nil

Source: Directorate General of Foreign Trade (DGFT), WTO and D/o Revenue, CBCE

****
Disclaimer: The information and opinions contained in the document have been compiled from various
sources believed to be reliable. This Department will not be liable for any losses and damages in
connection with the uses of the information provided in the commodity profile.

10 | C o m m o d i t y P r o f i l e f o r C o t t o n A p r i l , 2 0 1 9