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India Cotton Value Chain Analysis - Analysis of Growth, Trends and Forecasts (2020 - 2025)

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According to Cotton Corporation of India, cotton production for 2016-17 was at 5.88 million metric ton, making India the second largest producer of cotton in the world, after China.

The Indian cotton seed market is largely dominated by private players, who account for majority of the share in the market. The states of Gujarat, Maharashtra, Andhra Pradesh, Haryana, Punjab, Madhya Pradesh, Rajasthan, Karnataka, and Tamil Nadu are the major cotton producers in India.

Production is More Than Consumption

The production of cotton is expected to grow in the coming years, but the pace would be slower than that of consumption. To obtain value-added cotton from mills, a shift to trading cotton yarn and fabrics, rather than raw cotton, has emerged over the past few years, which is expected to continue over the forecast period. Demand for cotton is determined by demand for textiles and clothing, which are very sensitive toward changes in economic growth. 

Government Support to the Cotton Seed Sector

The Indian government has been taking a lot of initiatives, with respect to cotton seeds in particular. The main idea behind framing such policies has been to safeguard the interests of the various stakeholders involved in the value chain of the seed market in India. The latest regulation has been that of Cotton Seeds (Price) Control Order, 2015, which was mainly implemented to bring uniformity in GM Bt. cotton seed prices across the states in India, a uniformity that was previously non-existing. Also, under this order, licensing and formats for GM technology have been included, which impose tighter restrictions on GM technology providers, like MMB.

Reasons to Purchase the Report

  • To have an understanding of the stakeholders in the India cotton value chain and their respective roles in the value chain
  • The report outlines government policy regulations currently affecting the market
  • Supply chain analysis of the cotton sector
  • 3-month analyst support

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