Did
you know?
India's textile industry already
enjoys an advantage in world markets. This industry is being further developed, and this
will spur demand for cotton, especially the long-staple variety. |
Cotton
Market data (in million tonnes or million metric tons)
| Cotton |
1994-95 |
1995-96 |
1996-97 |
| Total market size |
2.30 |
2.36 |
2.41 |
| Locally produced |
2.35 |
2.41 |
2.30 |
| Total exports |
0.02 |
0.09 |
0.10 |
| Total imports |
0.10 |
0.02 |
0.03 |
| Source: Independent studies. Year ending March 31. |
Points to be noted:
- Given the importance being attached to the textile industry for exports, the demand
for cotton is likely to grow significantly in the coming years but cotton output is
unlikely to match the demand growth. Hence, prospects for exporting cotton to India are
good.
- Cotton is on India's Open General Licence at zero duty which means that it can be
imported without seeking prior approval and no customs duty has to be paid.
- The demand is expected to be substantial for long-staple cotton while the
medium-staple variety may also have to be occasionally imported.
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