2. GENERAL CHARACTERISTICS
BOMBAY COTTON TEXTILE MILL
BT COTTON ( )
MAJOR PRODUCERS
USES
INDIAN SCENERIO
FACTORS THAT DRIVE COTTON PRICE
MCX LAUNCHES FUTURE TRADING
GLOBAL SCENERIO
DEMAND AND SUPPLY
3. Major Cash Crop of India
Primarily used as a raw material (55-60% of
requirements).
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®) trades
first cotton futures contracts
4. Grown for its fibre
35% of the world's total textile fibre
Strength, absorbency, and capacity
Classified according to the staple, grade and
character
5. 1ST cotton traded between Bombay and China began in 17th century
Formation of the Rail Link in 1853 between Thana and Mumbai
Establishment of Warehouses in Sewri.
Establishment of the first cotton mill -“Bombay Spinning And
Weaving company” at Tardeo in central Bombay
Textile industry in Bombay flourished till the early 80's
Girangaon Textile
6. 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 of
BT cotton.
Average yield is only 319 kg/ha as compared
to world average of 603 kg/ha.
Loss due to damage to cotton crop is
estimated to be more than Rs.1200 crores/y.
8. Textile products from Cotton
Terrycloth
Towels
Denim
Fish net
Cotton oil
T-shirts
Coffee filter
Tent
11. Launched on 4th oct 2011
Trading volume of 9,600 bales valued at Rs 17.73
crore
Open interest was 1,575 bales on the very first day
The trading unit is 25 bales.
Tick size of the contract will be Rs 10 a bale.
Delivery centers through out the states of India
16. Prices have spiked significantly over the last 2
years
Slight expected decline in worldwide
production from 26.2 to 25.9 million tons
Global consumption would leave the world
cotton stocks down by 6% to 11.3 million tons
China have steadily increased and is expected
to drive a 5% increase in global imports