GENERAL CHARACTERISTICSBOMBAY COTTON TEXTILE MILLBT COTTON ( )MAJOR PRODUCERSUSESINDIAN SCENERIOFACTORS THAT DRIVE COTTON PRICEMCX LAUNCHES FUTURE TRADINGGLOBAL SCENERIODEMAND AND SUPPLY
Major Cash Crop of IndiaPrimarily used as a raw material (55-60% ofrequirements).Most traded commodities in the World.India invariably ranks 2nd/ 3rd in terms of production,The 2nd largest exporter in the world.1870 The New York Cotton Exchange (NYCE®) tradesfirst cotton futures contracts
Grown for its fibre35% of the worlds total textile fibreStrength, absorbency, and capacityClassified according to the staple, grade andcharacter
1ST cotton traded between Bombay and China began in 17th centuryFormation of the Rail Link in 1853 between Thana and MumbaiEstablishment of Warehouses in Sewri.Establishment of the first cotton mill -“Bombay Spinning AndWeaving company” at Tardeo in central BombayTextile industry in Bombay flourished till the early 80sGirangaon Textile
India ranks no 1 in the world accounting for 20% of the total area planted under BT cotton.Ranks 3rd position with 13 % in production ofBT cotton. Average yield is only 319 kg/ha as comparedto world average of 603 kg/ha.Loss due to damage to cotton crop isestimated to be more than Rs.1200 crores/y.
Textile products from Cotton Terrycloth Towels Denim Fish net Cotton oil T-shirts Coffee filter Tent
Launched on 4th oct 2011Trading volume of 9,600 bales valued at Rs 17.73croreOpen interest was 1,575 bales on the very first dayThe trading unit is 25 bales.Tick size of the contract will be Rs 10 a bale.Delivery centers through out the states of India
Prices have spiked significantly over the last 2yearsSlight expected decline in worldwideproduction from 26.2 to 25.9 million tonsGlobal consumption would leave the worldcotton stocks down by 6% to 11.3 million tonsChina have steadily increased and is expectedto drive a 5% increase in global imports