Domestic cotton players look for brand makeover

With rising cotton production in the country and record cotton export last year, players dealing in the commodity are trying to get Indian cotton branded in the international market. They feel once the product is branded, capturing global markets will be an easy affair.

"We have to do marketing properly to get a hold in the global market. We are trying to make a branded market in the country and for it, we are in talks with the government," said K F Jhunjhunwala, president, East India Cotton Association (EICA). He added that steps were being taken to standardise the quality of cotton so that all come under one brand.

In this connection, EICA is holding a two-day International conference in Mumbai this week to understand the global market and at the same time, market the country's cotton in the world.

India exported 5 million bales last year, highest in the history of the country. "We hope to cross the last year's figure," Jhunjhunwala said. The country's cotton production for the year 2006-07 is estimated at 270 lakh bales and is expecting an end stock of 45 lakh bales, which last year was over 70 lakh bales.

"With 45 lakh bales as end stock, cotton prices will not fall, and will be at par with the international prices," said the EICA president. Though world cotton production has improved, the consumption rate has outstripped it, sending signals of concerns.

"It is the second consecutive year when the world cotton consumption has exceeded production. And we see that in the year 2007-08, rise in gap will be large," said Ray Butler, editor, Cotton Outlook, UK.

In Indian context, things are no different. "In India too, the consumption is outpacing production due to high export demand and rising mill consumption locally, which we estimate will reach 225 lakh bales soon," said Jhunjhunwala.

India is the third largest cotton exporter after the US and Uzbekistan. The pace with which cotton production is going up, the will grab the second position in the near future, he said. On an average, the country produces 470 kg of cotton a hectare against the world average of 720 kg a hectare.