Production, Growth and Export Competitiveness of Raw Cotton in India - an Economic Analysis

Abstract

: Cotton is one of the major commercial crops where 70% of the crop is under rain fed conditions. Eighty- five of the cotton is grown in ten major countries of the world among which India stands second in production. The present study analyses the state wise production scenario of cotton over the years as well as the export composition and competitiveness. The study revealed that the % change of cotton area in the period II over the period II was highest for the state Andhra Pradesh (71.96%). Moreover, the country as a whole had an increase of 17.73% with a production increase of about 84.78 % and productivity increase of about 55.64%. The growth rate of the cotton area was negative while the growth of cotton production in the country was 4.47% and 3.91% increase in productivity during the period II. The study also showed that India has been exporting all types of cotton from 1980 onwards and the long and extra long staple cotton has registered highest share of exports with more than 40%. The export competitiveness revealed that India’s comparative advantage in cotton exports has been increasing over the years. Keywords: Cotton; Export; Production; Competitiveness Abbreviations: CMIE: Centre for Monitoring Indian Economy Pvt. Ltd.; ACGR: Annual Compound Growth Rate; RCA: Revealed Comparative Advantage; EPR: Export Performance Ratio; TE: Triennium Ending; RSCA: Revealed Symmetric Comparative Advantage.