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Cotton exports register mind boggling figures
Jun '08
Cotton production in India is seeing a rising trend. While the production was 136 lakh bales (170 kg) in 2002-03 season, it rose to 241 lakh bales in 2005-06 and jumped to 315 lakh bales in 2007-08, translating in to a phenomenal growth of 131 percent in 5 years.

Correspondingly the yield has also increased from 310.55 kgs/hectare in 2002-03 to 427.17 kgs/hectare in 2005-06 and 560.44 kgs/hectare in 2007-08 which means an increase of 80.46 percent again in 5 years.

The best performance came on the export-import front. From 16 lakh bales in 2002-03 imports climbed down to just 6.5 lakh bales in 2007-08. Exports galloped from just 84 thousand bales in 2002-03 to 47 lakh bales in 2005-06 and a stupendous 85 lakh bales in 2007-08. This in effect means a growth in exports of a mind boggling ten thousand percent in just 5 years.

The consumption pattern is also similar to the growth in yield. From 168.83 lakh bales in 2002-03 it ascended to 219 lakh bales in 2005-06 and an awesome 241 lakh bales in 2007-08.

Closing stocks rose from 24 lakh bales in 2002-03 to a comfortable 72 lakh bales in 2004-05 but dipped to 43 lakh bales in 2007-08. The stock to use ratio also witnessed a similar pattern. From 14 percent in 2002-03 it augmented to a perfect 37 percent in 2004-05 and plunged again to a precipitous 18 percent in 2007-08.

The alarms raised by the textile industry and industry bodies are not farfetched. Though production and yields have gone up, the exponential growth in exports has led to a shortage of good quality cotton in the market and led to a price increase of as much as 25 percent in the current cotton season. The stock to use ratio is also at a risky 18 percent, which ideally should be around 30 percent.

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Fibre2fashion News Desk - India

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