Demnd &Supply Analysis of Cotton Industry

Topics: Supply and demand, Consumer theory, Price elasticity of demand Pages: 11 (2675 words) Published: October 23, 2010


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Cotton, often referred as "White gold" has been in cultivation in India for more than five thousand years. Cotton textiles count among the oldest industries in India. One can follow it back to the times of Indus Valley Civilization, when cotton fabrics of India were in great demand even in the countries of Europe and West Asia. It used to be a cottage or village industry during those times. The spinning wheel comprised its only machine- simple but exceedingly inventive. The modern textile industry in India first began at Fort Gloster near Kolkata in early 19th century. But it in reality made a head start in Mumbai in the year 1854 when a cotton textile mill was set up there exclusively out of Indian funds. The cotton textile industry in India provides livelihood to farmers, and workers engaged in ginning, spinning, weaving, dying, designing and packaging, not leaving sewing and tailoring. It is India`s one of the most traditional and esteemed industry. More importantly, the industry strikes a rational balance between tradition and modernity. While the spinning occupation is rather centralized, weaving is exceedingly decentralized, providing scope for traditional skills of craftsmen in cotton, silk, zari, embroidery and so on. The hand spun and hand woven khadi holds back the ancient tradition of providing large scale employment. Cotton textile industry in India has all along prospered on its own funds. On the other hand, the country possesses the most contemporary capital intensive and high speed mill-produced cloth with a huge market both at home as well as abroad.

Profile of Cotton:

Type of Crop| Sowing Period| Harvesting Time| Type of Soil| Kharif| June(Beginning Of Monsoon)| Early Days of November(End of Monsoon)| Black Soil (Cotton Soil)|

Crops| Climatic Condition| Major Producing States| Remarks| Cotton(a cash crop)| 21̊̊̊ C-25̊̊̊̊̊̊ C of Temperature50cm -80 cm of rainfall| Maharashtra, Gujarat , Andhra Pradesh, Karnataka, Tamil Nadu, Madhya Pradesh| * It is a major Fibre crop in India * Short staple is mainly cultivated in India|


In India cotton textiles production is basically located in Maharashtra, Tamil Nadu and provinces of Gujarat. Interestingly, several government programmes have sustained cotton textile industries in almost all the states in the country. In the country, because of irrigation restrictions, cotton textile productions are heavily dependent on monsoon season. Further, in 1997 and 1998 the country had produced 37.4 billion meters of fabrics. Now the proportion between natural and human-made fibre is almost equal. The important centres of cotton textiles industry comprise Mumbai, Ahmadabad, Coimbatore, Madurai, Indore, Nagpur, Sholapur, Kolkata, Kanpur, Delhi and Hyderabad. Lately, the readymade cotton garments industry has been developing in tremendous momentum to cater to foreign markets. They are thus bringing home prized foreign exchange. One of the problems faced by cotton textile industry in India was the old-fashioned technology of old mills and their industrial sickness. Slowly, but steadily old technology is being taken over by the new one. India is yet to exploit its enormous potential to manufacture classic cotton fabrics, for which there is enormous demand in the upper social classes of the industrialized countries of the globe.

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