COTTON

Presented by:-Aftab Mulla

ROADMAPGENERAL CHARACTERISTICSBOMBAY COTTON TEXTILE MILLBT COTTON (Bacillus Thuringiensis)MAJOR PRODUCERSUSESINDIAN SCENERIOFACTORS THAT DRIVE COTTON PRICEMCX LAUNCHES FUTURE TRADINGGLOBAL SCENERIODEMAND AND SUPPLY

INTRODUCTION

Major Cash Crop of India

Primarily used as a raw material (55-60% of requirements).

Most traded commodities in the World.

India invariably ranks 2nd/ 3rd in terms of production,

The 2nd largest exporter in the world.

1870 The New York Cotton Exchange (NYCE®) trades first cotton futures contracts

Grown for its fibre

35% of the world's total textile fibre

Strength, absorbency, and capacity

Classified according to the staple, grade and character

GENERAL CHARACTERISTICS

1ST cotton traded between Bombay and China began in 17th century

Formation of the Rail Link in 1853 between Thana and Mumbai

Establishment of Warehouses in Sewri.

Establishment of the first cotton mill -“Bombay Spinning And Weaving company” at Tardeo in central Bombay

Textile industry in Bombay flourished till the early 80's

Girangaon Textile

BOMBAY TEXTILE MILL

India ranks no 1 in the world accounting for 20 % of the total area planted under BT cotton.

Ranks 3rd position with 13 % in production of BT cotton.

Average yield is only 319 kg/ha as compared to world average of 603 kg/ha.

Loss due to damage to cotton crop is estimated to be more than Rs.1200 crores/y.

BT (Bacillus Thuringiensis) COTTON

MAJOR PRODUCERS

Textile products from Cotton

Terrycloth

Towels

Denim

Fish net

Cotton oil

T-shirts

Coffee filter

Tent

U S

E S

INDIAN SCENERIOSteady increase in India's annual production

Have produced 31.2 million bales of cotton from an acreage of 11.16 million hectares

Has the largest area in the world under cotton cultivation

Major exporter of cotton

Mostly imports Long and Extra Long Staple (ELS) cotton from the US

States of Gujarat, Maharashtra and Andhra Pradesh are the major producers of cotton

FACTORS THAT DRIVE COTTON PRICE

GRAIN PRICES

COTTONSEED PRICE

CLIMATE

SYNTHETIC FIBER

MCX LAUNCHES FUTURE TRADING

Launched on 4th oct 2011

Trading volume of 9,600 bales valued at Rs 17.73 crore

Open interest was 1,575 bales on the very first day

The trading unit is 25 bales.

Tick size of the contract will be Rs 10 a bale.

Delivery centers through out the states of India

COTTON PRICE PLAY SPOIL SPORT

Prices have seen sharp spikes probably four or five times

Rates of Sankar-6 variety of cotton rose to a high of Rs 67,000 a candy

The ICE moved up to a historic high of $2.27 a pound.

Rates have declined by nearly 50 per cent

Initially banned cotton exports in 2010

Subsequently opened it up with restrictions.

GLOBAL SCENERIO 80 nations cultivating the crop

Top three consumers -China, India, and Pakistan

4 largest cotton-producing countries - China, India, USA and Pakistan

7-8 million MT

USA - largest exporter of cotton

Global trade in raw cotton in 2010-11- 7.7 million MT

DEMAND AND SUPPLY

Prices have spiked significantly over the last 2 years

Slight expected decline in worldwide production from 26.2 to 25.9 million tons

Global consumption would leave the world cotton stocks down by 6% to 11.3 million tons

China have steadily increased and is expected to drive a 5% increase in global imports

BIBLOGRAPHY

www.google.com

www.indiancommodity.com

www.commodityonline.com

www.mcxprofitguru.com

Wikipedia

THANK

YOU…