Current scenario of the Cotton Industry Raw material security. Cotton production Vs Consumption by Mills. Pink Boll worm attack. Quality enhancement. Bt3, Herbicide tolerant cotton. Control of contamination by various best practices.

Sustainable Cotton Production Challenging gender inequality. Sustainable farming practices. Implementing Partners in other countries. Better Cotton Initiative (BCI) accounts for 14% of global cotton. Projected to touch 30% in 2020. More Ginners can join the BCI program. Kappas Plucker should be utilised more widely to bring down Kappas cost to less than 7% of Kappas price.

India’s present cotton import bill is USD 991 Million [2017]. USD touching INR 70 will widen the import bill. India has a very high trade deficit, traditionally due to Gold imports and currently due to Smart Phone imports.

International ELS & LS market Israel though a very small producer (Israel Pima & Acalpi) is a consistent performer in terms of quality. Crop size is 12,000 MT per year. Israel overcame issues such as water shortage by developing best practices in farming and achieving world’s highest productivity per hectare of farm land.

International ELS & LS market Egyptian Cotton went down in quality over the past 4 years. Now they have made a big come back. Size of the Egyptian crop (2018/19) would be 85,000 MT. Giza-94 (52,000 MT), Giza-86 (24,000 MT), Giza-95 (8,500 MT), Giza-90 (1,500 MT), Giza-92/96 (5,000 MT).

International ELS & LS market US Pima is largely consistent in quality and spinnability. Preferred cotton by quality spinners catering to the high end market. Crop size is 1,52,300 MT per year. Pima & Giza have been branded very successfully.

Indian ELS & LS market India was a pioneer in the ELS segment by developing the DCH cotton. Suvin crop size is miniscule, about 340 MT. Now we import 60,000 MT of ELS cotton per year. We need to focus more seriously on developing newer seeds and boost our Research & Development in improving our ELS output.

Indian ELS & LS market Pure DCH (34 mm+ cotton) crop size has been in the range between 1.7 to 2.5 Lakh bales. 2017/18 total ELS (33 mm & longer) production is 95,000 MT and consumption is 1,55,000 MT. India will have a huge potential if we brand and market our cotton internationally. Our wish should be to see “Made in India” tag on popular branded garments. This will strengthen the Fibre to Fashion supply chain.

World Cotton Consumption ( in Thousand MT ) Year In Thousand MT % 2009-10 26017   2010-11 25146 -3% 2011-12 22669 -10% 2012-13 23567 4% 2013-14 23929 2% 2014-15 24436 2015-16 24657 1% 2016-17 25215 2017-18 26613 6% 2018-19 (P) 27641

World Textile Fibre End - Use

World Extra Long and Long Staple Consumption ( in MT)   2017/2018 % 2018/2019 Expected INDIA 155000 36% CHINA 160000 37% 150000 35% PAKISTAN 29000 7% EGYPT 15000 3% 25000 6% PERU 12000 BANGLADESH 11000 TURKEY 10000 2% USA 6500 INDONESIA 5000 1% OTHERS THAILAND 4500 GERMANY 3500 3000 JAPAN ITALY 2500 AUSTRIA SOUTH KOREA TAIWAN 1500 0% TURKMENISTAN 1000 MEXICO 500  Total 430500 100% 430000

World Extra Long and Long Staple Production ( in MT )   2017/2018 % 2018/2019 Expected USA 154000 35.5% 35.4% INDIA 33mm+ 95000 21.9% 21.8% CHINA 70000 16.2% Egypt 75000 17.2% EGYPT 61800 14.3% 60000 13.8% TURKMENISTAN 25000 5.8% 5.7% ISRAEL 12000 2.8% 8000 1.8% SUDAN 5000 1.2% 1.1% PERU 4000 0.9% SPAIN 3500 0.8% UZBEKISTAN 1000 0.2% GREECE 2000 0.5% TAJIKISTAN Total  433300 100% 435000

Indian DCH Cotton Yarn Quality with Comparison of Imported Cotton   COUNT 80/1 COMBED COMPACT WVG Mixing DCH SPANISH ELS Diff % with DCH G 94 US PIMA USTER TESTER - 5 Thin (-50%) 12 10 8 Thick (+50%) 43 30 20 Neps (+200%) 125 100 47 60 Total / Km 180 140 -22% 75 -58% -44% UTR - 4 RKM 24.0 23.0 -4% 25.5 6% 27.5 15% Realization % 65% 69% 4% 71% 76% 11% Rate/ Kg. in Rs. 182 0% 206 13% 237 30%

Indian DCH Cotton Yarn Quality with Comparison of Imported Cotton   COUNT 100/1 COMBED COMPACT WVG Mixing DCH SPANISH ELS Diff % with DCH G 94 US PIMA USTER TESTER - 5 Thin (-50%) 25 35 30 Thick (+50%) 80 70 45 Neps (+200%) 245 145 55 100 Total / Km 350 250 -29% 125 -64% 200 -43% UTR - 4 RKM 23.0 22.0 -4% 24.5 7% 26.5 15% Realisation % 65% 69% 4% 71% 6% 76% 11% Rate/ Kg. in Rs. 182 0% 206 13% 237 30%

Commodity Vs Currency The hit taken by the Turkish Lira has affected emerging market currencies. Turkey has an import bill of $ 3 Billion (2017) which is 6% of total cotton imports worldwide. Crisis in Turkey will affect the textile segment in a significant manner. Since demand falls, prices will soften. NYF December’18 has fallen to 81.80 c.