Vol. 11, Special Issue 2 (2022)

Author(s):
Pavithra S, RR Mishra, Gaware Utkarsha Pramod, PP Baviskar, Kumari Kalpana and Nasim Ahmad

Abstract:
Cotton is known for its versatile performance and natural comforts. Its strength and absorbency quality makes it an ideal fabric. Cotton is also referred to as White Gold. It is one of the most important fibre and cash crop of India which plays a dominate role in agricultural and industrial sectors. Considering the importance of cotton in the Indian economy, the present study was conducted with an objective to analyse the growth and instability of cotton in production and trade aspects. To fulfil the objectives of the study, time series data related to area, production, productivity, import and export of cotton pertaining to a period of 30 years beginning from 1989-90 to 2018-19 were collected from various websites, research journals and government publications, etc. The data was further divided into three sub-periods period I (1989-90 to 1998-99), period II (1999-2000 to 2008-09) and period III (2009-10 to 2018-19) for the purpose of analysis. To analyse the growth rate and instability of cotton, compound annual growth rate, co-efficient of variation and Cuddy-Della Valle Index (CDVI) techniques were used. The study revealed that, area under cotton increased at a significant rate of 1.82 per cent per annum in the period under study. Period-wise analysis of growth in area indicated that it increased at decreasing rate. Production of cotton increased at a significant rate of 4.82 per cent per annum. It increased at 4.90 per cent per annum in period I which further increased to 10.15 per cent per annum in period II mainly because introduction of hybrid cotton seeds in period I and introduction of Bt-cotton in period II. Both of these growth rates were found to be statistically significant. The rate of growth in production however, declined to non-significant rate of 0.88 per cent per annum in period III probably because of the insect pest of cotton became resistant to pesticides used for controlling them in that period. Productivity showed a significant positive growth of 2.96 per cent per annum in overall period but it increased at the rate of 8.78 per cent in period II probably because of the same reason. The quantum of exported cotton increased at 14.77 per cent per annum in the entire period under study. It declined in period I and period III at 20.69 and 10.69 per cent per annum respectively. In contrast, export of cotton increased at an impressive and highly significant rate of 89.17 per cent per annum in period II. Almost similar pattern of growth was observed in case of export value. The quantity imported cotton and its value exhibited reverse trend over time. These two items increased at the rate of 16.26 per cent per annum and 17.27 per cent per annum in overall period. Furthermore, the study indicated that the sub-period during which there was greater and significant increase in export and decrease in import. The study further revealed that growth in area, production and productivity of cotton was relatively stable in India in the period under study whereas growth in quantity and value of cotton export and import was found to be relatively instable during the study period.