By: Mr. Kushal Patel, Managing Director, Axita Cotton Ltd.
The future of the cotton industry appears to be bright and promising. Although there are several significant trends and challenges as well that may affect the cotton industry’s development in the coming years, the cotton business has come a long way over the last decade. It was once regarded as deeply unsustainable, but it has made tremendous progress in addressing its legacy of unacceptable environmental damage and imperial-style inequalities.
Data from Ministry of Textiles, India1 says that cotton is one of the most important commercial crops cultivated in India and accounts for around 23% of the total global cotton production. As per the Ministry of Textiles, India, it plays a major role in sustaining the livelihood of an estimated 6 million cotton farmers and 40-50 million people engaged in related activity such as cotton processing & trade, says.
The Textiles Ministry, in it’s Annual Report for year 2022-232 further revealed that India occupies first position in the world in cotton acreage with around 119.10 lakh hectares under cotton cultivation which is around 36% of the world area of 326.36 lakh hectares. Approximately 62% of India’s cotton is produced on rain-fed areas and 38% on irrigated lands. During 2021-22, India’s productivity was around 445 kg/ha. India has emerged one of the largest producers, consumers and exporters of cotton in the world. Apart from being the provider of a basic necessity of life i.e. clothing which is next only to food, cotton is also one of the largest contributors to India’s net foreign exchange by way of exports in the form of raw cotton, intermediate products such as yarn and fabrics to ultimate finished products in the form of garments, made ups and knitwear.
At present, cotton is a freely exportable commodity from India. India exports cotton mainly to Bangladesh, China, Vietnam, Indonesia, Taiwan, Thailand etc, out of which Bangladesh & China are the largest importer of Indian cotton. Although India is a major producer and exporter of cotton, some quantity of extra-long staple variety of cotton, which is not available in the country, is imported.
There are different trends that have started in recent years; among which sustainability has emerged as a key trend in the cotton sector. Consumers are increasingly concerned about the environmental and social effect of their purchases and they demand transparency and accountability from corporations across sectors. As a result, sustainable cotton production practices like organic farming, water conservation, and fair labor standards are gaining popularity.
Cotton farming is also being altered by technology advancements that aim to improve efficiency, production, and sustainability. Precision agriculture technologies, such as GPS-guided machinery and drones help farmers optimize inputs, decrease waste, and increase yields. The number of key advancements such as: Biotechnology, as demonstrated by newly developed (GM) cotton types provides options for pest resistance and climatic tolerance, with the Automation and robotics simplifying labor-intensive operations, alleviating labor shortages, and laying the groundwork for a more mechanized future.
The cotton sector is starting to embrace the idea of a circular economy as concerns over environmental degradation and textile waste increases. Designing products for a lifetime, recyclability and reuse is becoming increasingly popular for both producers and merchants. The Textile recycling technology advancements permit for the regeneration of cotton fibers from post-consumer waste, effectively closing the loop and reducing the industry’s environmental imprint. Circular fashion initiatives, such as clothing rental and resale platforms are changing consumer behavior and developing a culture of sustainability.
Cotton consumption has picked up on higher market arrivals and increase in demand from textile mills. In the first four months of the cotton season 2023-24 starting October, consumption till January end was estimated at 110 lakh bales of 170 kg each, up by around 19 per cent over 92.50 lakh bales a year ago, says a BusinessLine report3.
As per OECD-FAO Agriculture Outlook 2020-2029 report4, world cotton production is projected to grow 1.5% p.a. to reach almost 30 Mt in 2029. This growth will come from an expansion of the cotton area (0.5% p.a.) as well as growth in average global yields (1% p.a.). Yields have been flat since 2004 as several countries struggled with pest problems and water scarcity, and because production shares of low-yielding countries have been increasing. Better genetics and the adoption of better agronomic practices for sustainable cotton production could bring improvement over the coming decade, but yield growth could remain a challenge in several countries.
The changing demographics, digitalization, and knowledge of sustainability are all driving changes in consumer choices. Consumers who are ethically conscious are becoming more and more conscious with the things they buy. Thanks to developments in digital printing and on-demand manufacturing technology, customisation and personalisation are becoming more and more popular. Growing economies, especially in Asia and Africa, provide rich growth prospects because of the increased demand for cotton textiles brought by urbanisation and rising wages.
The future of cotton industry has been said to be bright while looking ahead to the cotton sector, a number of opportunities and difficulties become apparent. Climate change is a severe concern that requires adaptation strategies and resilient farming practices. The significance of agility and diversification in global supply chains is emphasised by trade interruptions, geopolitical tensions, and economic uncertainties. When combined with a dedication to sustainability, technological improvements provide avenues for innovation and competitiveness.
To conclude, the cotton sector is in a unique position ready to change in response to changing consumer preferences and international issues through the adoption of sustainable practises, utilisation of technology, and promotion of collaboration throughout the value chain, the industry can steer towards a future characterised by more resilience, responsibility, and prosperity.
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