Managing production risks in agri-supply chains in India w.s.r to cotton

Abstract

India is one of the leading cotton-producing countries globally, producing around 6.42 million metric tonnes (Statista). The major cotton-producing states in India are Gujarat, Maharashtra, Madhya Pradesh, Telangana, Andhra Pradesh, Tamil Nadu, Karnataka, Punjab, Haryana, Rajasthan, and Orissa. Gujarat is the largest cotton producer for 26.3% of production, followed by Maharashtra (22.7%) and Telangana (14.7%) (cotcorp.org ; page 3). Indian grown Cotton provides 94.18% to the Indian Cotton textile industry. India is one of the largest producers as well as exporters of cotton yarn. The Indian textile industry contributes around 5 per cent to country's gross domestic product (GDP), 14 per cent to industrial production and 11 per cent to total exports earnings. The industry is also the second-largest employer in the country after agriculture, employing over 51 million people directly and 68 million people indirectly, including unskilled women. The textile industry is also expected to reach US$ 223 billion by the year 2021 (link). Like other agri-supply chains, cotton supply chain also faces risk. The Indian cotton value chain, which begins with fibre production, post procurement of raw Cotton, culminates in textile and garment products, is very complex in structure with a profusion of numerous smallscale, decentralized and fragmented units along with some large-sized integrated enterprise. This study focuses on risks associated with the cotton supply chaina and suggestion of innovative ways to manage risk.