(As on 10.3.2017)
Commodity Profile for Cotton- March, 2017
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 2016-17 ......................................................................................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 2012-13 to 2016-17.................................................7
11.
Future prices........................................................................................................................................7
12.
Price Movement in Major Domestic Mandis ......................................................................................8
13.
Cotton Arrivals in Major Domestic Mandis........................................................................................8
14.
Trade Policy ........................................................................................................................................9
14.1
Export policy...................................................................................................................................9
14.2
Import Policy ..................................................................................................................................9
1|Commodity Profile for Cotton March, 2017
1. Cotton Estimates for India(Crop Year: October 2016 to September 2017)
(Unit:Lakh Bales)
Table 1: Cotton Stock, Crop Size, Trade, and Consumption
2015-16
66.00
301.47
24.07
72.86
318.68
2016-17
(Estimated)
Particular
43
361.6
15.3
81.22
Opening stock
Crop Size
Total Imports
Total Exports
Total Availability for
338.7
domestic consumption
January, 2017
(Actual)
N.A.^
325.27#
7.51**
29.55**
Source
Textile Commissioner
DES
DoC
DoC
N.A. @
Sources: Directorate of Economics & Statistics (DES), Department of Commerce (DoC), Textile Commissioner.
For preparing estimated figure for 2016-17, Opening Stock has been taken from O/o Textile Commissioner. Production,
exports and imports are last three years’ average.
Total Availability for Domestic Consumption has been arrived at by adding Opening Stock, Crop size and import and
deducting Exports.
^Month wise opening stock is not available.
# As per 2nd t Advance Estimates for 2016-17, DES of 15.2.2017
**Export and import is for October-January, 2016-17.
@ Crop of 2016-17 is yet to arrive in market. Therefore actual availability is not available .
2. Cotton Estimates for World
(Unit: lakh Bales)
Table2: Global Cotton Stocks, Production, Consumption & Export
Year Beginning
2013-14
2014-15
2015-16
2016-17
August 1
(Estimated)
Beginning stock
1178
1322
1440
1307
Cotton Production
1542
1525
1257
1032
Cotton Consumption
1406
1410
1393
1119
Cotton Exports
524
453
438
352
Ending stocks
1322
1440
1307
883
Source: USDA*: Estimated Figure

During 2013-14 and 2015-16, the world production has decreased by 18% (from 1542 Lakh Bales to
1257 Lakh Bales), export by 16% (from 524Lakh Bales to 438Lakh Bales). Consumption has
marginally decreasedby 0.9%(from 1406Lakh Bales to 1,393 Lakh Bales).

Based on USDA database, the world export may decline by around 86 lakh bales in 2016-17 over the
exported value registered in 2015-16. Fall in the import demand from China and excess stocks in the
markets are the contributing factors in the decline of total exports during 2015-16.
2|Commodity Profile for Cotton March, 2017
3. Domestic Production
Figure 1: Domestic Cotton Production
400
in lakh bales
350
300
250
200
150
100
50
0
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
Production
222.8
240.2
330.0
352.0
340.0
348.1
354.8
Source: DES, Agriculture, Cooperation & Farmers Welfare
*As per 2nd Advance Estimate by DES

300.1
201617*
325.1
Bale=170 Kgs
The projected figure for domestic production in 2016-17 is slightly higher than that of the
previous year.
4. Global Production
Figure 2: Global Production
350
300
250
200
150
100
50
0
India
China
2014-15
USA
Pakistan
2015-16
Brazil
Australia
Other
2016-17*
Source: United State Department of Agriculture (USDA).*: Advance estimation by USDA

India and China are expected to be the top two global producers of cotton in 2016-17
followed by USA.
3|Commodity Profile for Cotton March, 2017
5.
Major Exporting and Importing Countries of Cotton in the World
5.1 Major Exporting Countries in the World
Figure 3: Major Exporting Countries
180
160
Lakh Bales
140
120
100
80
60
40
20
0
2013
2014
2015
Source: Comtrade

USA was the major exporting country in the world followed by India and Brazil in 2015.
5.2
Major importing Countries in the World
Figure 4: Major Importing Countries
300
Lakh Bales
250
200
150
100
50
0
2013
2014
2015
Source: Comtrade

China was the largest importing country in the world followed by Vietnam and Turkey in
2015.
4|Commodity Profile for Cotton March, 2017
India’s Major Export Destinations
6.
Value in Rs Crore
5000
Figure 5: India's Major Export Destination
4000
3000
2000
1000
0
2014-15
2015-16
Source: Department of Commerce

India’s major Export destinations in 2015-16 were Bangladesh, Pakistan and China.

Countries such as Bangladesh, Vietnam, Pakistan and Taiwan are scaling up their cotton
imports from India to meet the requirements of their export-focused garment industries.

China’s restrictive import policy and its accumulated stock have adversely impacted India’s
export to that country in 2015-16.
India’s Trade Flow of Cotton form 2011-12 to 2016-17
7.
Year
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17(Apr-Jan)
Table 3: Trade Flow for India
Lakh Tons
Lakh Bales
Export
Import
Export
Import
20.13
0.78
118.41
4.59
20.15
2.16
118.53
12.71
19.41
1.78
114.18
10.47
11.43
2.58
67.20
15.22
13.46
2.32
79.17
13.64
7.1
4.60
41.90
27.06
Source: Department of Commerce

India exported substantial quantity of cotton during 2011-12 to 2013-14.
5|Commodity Profile for Cotton March, 2017
8.
Domestic Prices Movement
8.1
Price Movement for Raw Cotton (Kapas)at major Centers during December, 2015 to
January, 2017
Rs/Quintal
Figure 6: Kapas Price trend at key centers
8000
7000
6000
5000
4000
3000
2000
1000
0
Rajkot (BT)
Ahmedabad (S-6)
Amravati (Mech-1)
Hisar (BT)
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 during October, 2015 to January, 2017
Rs./ Maund (of 37.32 kg each)
Figure 7: Lint Price Trent at key Centers
5000
4500
4000
3500
12-Oct-15
29-Oct-15
16-Nov-15
02-Dec-15
18-Dec-15
07-Jan-16
23-Jan-16
10-Feb-16
26-Feb-16
14-Mar-16
31-Mar-16
18-Apr-16
04-May-16
20-May-16
06-Jun-16
22-Jun-16
08-Jul-16
25-Jul-16
10-Aug-16
30-Aug-16
16-Sep-16
03-Oct-16
20-Oct-16
08-Nov-16
24-Nov-16
10-Dec-16
27-Dec-16
12-Jan-17
30-Jan-17
16-Feb-17
04-Mar-17
3000
Bhatinda
Sirsa
Source: Textile Commissioner
6|Commodity Profile for Cotton March, 2017
Abohar
9
Movement of Domestic as well as International Prices of Cotton
Figure 8: International and Domestic Price Comparison
International prices (Cotlook A Index)
Feb/17
Dec/16
Oct/16
Aug/16
Jun/16
Apr/16
Feb/16
Dec/15
Oct/15
Aug/15
Jun/15
Apr/15
Feb/15
Dec/14
Oct/14
Aug/14
Jun/14
Apr/14
Feb/14
Dec/13
Oct/13
Aug/13
Rs/Ton
140000
130000
120000
110000
100000
90000
80000
70000
Domestic Prices ( Shankar-6)
Source: International Price –cotlook.com, Domestic Price- Textile commissioner

Domestic Prices were higher than International price during June, 2016 to October, 2016
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
2012-13
2013-14
2014-15
2015-16
2016-17
Medium Staple Cotton
3600
3700
3750
3800
3860
Long Staple Cotton
3900
4000
4050
4100
4160
Source: Commission for Agricultural Costs and Prices (CACP)

There is an increase in the Minimum Support Price (MSP) for both Medium as well as long
staple size cotton. This figure has increased by 7.22 percent for medium staple and 6.66
percent for long staple cotton in the last 5 years.
11 Future prices
(Unit: Rupees/Bale)
Table 5: Future Prices for Cotton
Date of
Contract
Mar- 2017
May-2017
July-2017
Oct-2017
Dec- 2017
Mar- 2018
7 March
2016
7
February
(1 month
ago)
7
December
2016 (3
months
ago)
7
September
2016 (6
months
ago)
19257.8
19257.8
19444.7
19684.0
18771.9
18759.4
18917.1
19181.6
19385.7
18617.3
18642.5
18783.6
18034.8
18128.8
18111.0
17996.8
17704.9
N.A
17313.4
17345.7
17348.2
17231.5
N.A
N.A
7 March, 2016
(year ago)
%
Change
over a
month
%
Change
over
previous
6 months
14624.9
N.A.
N.A
N.A
N.A
N.A
1.80
0.39
0.30
5.72
0.69
N.A.
11.23
11.02
12.08
14.23
N.A
N.A
Source: Intercontinental Exchange (ICE).
7|Commodity Profile for Cotton March, 2017

Future prices for cotton are expected to increase over the last six months as shown in Table
5.
12 Price Movement in Major Domestic Mandis
(Unit: Rupees/ Quintal)
Table 6: Price Movement in Major Domestic Mandis
Markets
Rajkot
Surender Nagar
Amaravati
Guntur
Warangal
Sirsa
Bhatinda
Ganganagar
February,
2017
January,
2017
February,
2016
% Change (over
previous month)
% Change (over
previous year)
5559.1
5476.0
5521.7
5280.7
4334.6
4532.17
0.68
3.70
28.25
20.83
375
4820.1
5296
4641.4
4689
4128.3
1.49
3.85
14.63
16.76
5300.4
5570.3
5914.1
5476.7
5277.2
5237.4
5504.9
5272.8
4138.3
4539.4
469.0
4410.1
0.44
6.36
7.43
3.87
28.08
22.71
32.34
24.18
Source: Agmarknet

Major mandis in India experienced an increase in prices in February, 2016 over the same
period of the previous year.
13 Cotton Arrivals in Major Domestic Mandis
(Unit: ’000Tonnes)
Markets
Rajkot
Surender Nagar
Amravati
Guntur
Warangal
Sirsa
Bhatinda
Ganganagar
February ,
2017
(cumulative)
94.7
31.4
117.2
1.9
90.9
114.1
28.1
231.3
January , 2017
(cumulative)
71.1
29.4
89.1
1.8
67.1
105.3
23.5
209.4
February,
2016
% Change
(over previous
month)
% Change
(over previous
year)
33.2
6.7
31.5
7.9
35.5
8.4
19.8
10.4
56.03
-9.0
-0.6
-47.2
-22.0
79.1
-5.7
168.7
60.7
34.5
117.8
3.7
116.6
63.7
29.8
86.0
Source: Agmarknet.

Arrivals in February, 2017 in major of the domestic mandis like Guntur, Warangal,
Bhatinda, Surender Nagar were less over the same period of the last year.
8|Commodity Profile for Cotton March, 2017
14 Trade Policy
14.1 Export policy: Export of cotton is free without any restrictions.
Table 8: Export Policy
Exim
Code
5201
5202
5203
Item Description
Policy
Cotton neither carded nor combed
Cotton waste (including yarn waste and garneted stock)
Cotton, carded or combed
Free*
Free
Free*
Source: Directorate General of Foreign Trade (DGFT)
*: The registration requirement for export of cotton (HS Code 5201and 5203) has been dispensed with vide DGFT’s
Notification No. 102 (RE-2013)/2009-14, dt: 8.12.2014.
14.2 Import Policy: Import of cotton is duty free without restrictions.
Table 9: Import Policy
Exim code Item Description
Policy
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
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 Garneted 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
9|Commodity Profile for Cotton March, 2017