Identification of causes for low performance of Indian cotton yarn in international markets and its mitigation

Abstract

Amidst all the agricultural and economic growth in the country, Trading continues to act as one of the major streams for the generation of foreign exchange for the textile processing and manufacturing sectors. India has been an influential player in the international cotton trading market. Cotton cultivation and processing employs about 60 million people and thus is generates employment in both the rural and urban sectors. Hence, this crop is rightly referred to as "white gold." The constraints in cotton trading can be broadly divided under two major headings, i.e., the constraints faced by producers for augmenting and improving the current crop production and the issues faced by the end consumer due to certain policy and license issues on the part of the government. (Kumar, A., 2013) With the US and China trade war, ragging over the protection of intellectual property rights has flooded the market with cheap yarns, adversely affecting the Indian cotton production Industry, With the production costs of Indian yarns increasing due to increased costs of seeds and use of plant protection chemicals and the new trend of organic Cotton raising its head in the international markets, policy changes, cultivation practice modifications and search or newer and niche markets for the Indian yarns remain a major concern as of now.