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Cotton Seed

Cottonseed is a by-product of cotton after lint recovery. Hence, the basic cultivation aspects are applicable to cotton crop. Cottonseed, similar to other oilseeds, is a good source of oil and protein. 
 
Economically Important Products:
Oil: Cottonseed is recovered from lint and crushed for oil. Recovery is about 11-12% of seed.
Meal: Leftover endosperm after oil extraction is a rich source of protein and is used as a feed for animals or fertilizer for plants. Recovery of meal is about 85-86%.  It is also known as Kapasia khalli or COC.
Hulls: The outer cover of the cottonseed is called hull and its recovery is about 2%. They are rich source of protein and fiber (cellulose). They are considered cost effective animal feed. 
 
World Scenario
World production in cottonseed has increased moderately during the past decade from about 36 million tons in the early 2000s to about 45 million tons in 2013-14. China is the largest producer contributing for about 29% of total output in the world. Production in India has increased rather steeply during the past 10 years from about 4.5 million tons in 2002-03 to about 12.3 million tons in 2013-14.
 
 
Contrary to this, output from the U.S. declined from about 6-7 million tons to less than 5 million tons during the corresponding period. However, the output in other major producing countries Pakistan and Brazil has remained largely at the same level during the past decade. Consumption of cottonseed witnessed more or less the similar pattern as that of production.
 
Table 1: Global balance sheet of cottonseed (1000 tons)

 
Production
Imports
Exports
Consumption
Stocks
2009-10
39508
552
572
39517
905
2010-11
44298
849
1012
43666
1374
2011-12
47776
1099
1129
47158
1962
2012-13
46063
939
1138
46397
1429
2013-14P
44514
819
1041
44395
1326

P: Projection         Source: USDA
 
On the other hand, cottonseed exports are very marginal and confined to only a few countries. Australia and U.S. together account for about 75% of total world exports of cottonseed. Major importers include China, South Korea, Japan, Mexico and U.S. Imports by China have increased only recently.
 
Domestic Scenario
Domestic production of cottonseed has more than doubled in the past 10 years primarily on account of a sharp rise in yields. Nevertheless, the seed production has increased rather steadily compared to that of lint production.
 
 
Almost the cottonseed produced in the country is consumed domestically there are almost no or negligible exports. Domestic consumption has also been increasing constantly. Further, stocks were also built up to a comfortable level over a period.
Table 2: Domestic demand and supply of cottonseed (000 tons)

 
Production
Consumption
Exports
Ending Stocks
2009-10
10402
10208
4
373
2010-11
11548
11500
8
413
2011-12
12312
12120
8
597
2012-13
12100
12193
8
496
2013-14P
12300
12300
8
488

P: Projection         Source: USDA
 
 
State-wise production
Among all the major states that produce cotton, Gujarat, Maharashtra and Andhra Pradesh occupy the first three places, accounting for over 70% of total domestic production. Maharashtra has the largest area under cotton cultivation (34%) but it contributes for only 21% of total production, next to Gujarat at 35%. Andhra Pradesh occupies the third place in the country, both in terms of area and production.
 
 
 
Major Markets
Spot markets: Akola, Rajkot, Guntur, Bhatinda, Ganganagar.
Futures: Cottonseed futures are traded on NCDEX
 
External Trade
Major export destinations: NA
Major import sources: NA
 
Factors Influencing Prices
Carryover stocks: Leftover stocks from the previous year’s production after meeting the demand.
Expected demand: Average level of consumption and exports during the past few years
Crop acreage: Extent of area sown under the crop
Output expectations: Estimated output based on the acreage and weather conditions and pest infestation etc.,
Imports and exports: Need to know the details of important sources and destinations of the external trade.
Government policies: Any change in government policy relating to the crops.
Procurement: Direct procurement by the government agencies and storage in warehouses change in tariff and base prices of externally traded goods will have a direct impact on the respective commodity prices.
 
 
Cottonseed Oil
Main product derived from the seeds is seed oil. Oil recovery is on average about 11-12%. Cottonseed oil produced in the country is completely consumed within the country. Further, India doesn’t import any notable amounts of cottonseed oil.
China is the largest producer as well as consumer of cottonseed oil followed by India and Pakistan and these three countries together account for about 65% of global cottonseed oil production and consumption. World trade in cottonseed oil is negligible and accounts for about 2-3% of world’s production.
Table 3: Trends in demand and supply of oil in the world (‘000 tonnes)

 
Production
Imports
Exports
Consumption
End Stocks
2009-10
4594
67
109
4592
162
2010-11
4961
68
143
4780
268
2011-12
5248
80
175
5160
261
2012-13
5269
83
151
5241
221
2013-14P
5149
65
147
5084
204

P: Projection    Source: USDA
 
 
Table 4: Trends in demand and supply of oil in India (‘000tonnes)

 
Production
Imports
Consumption
End Stocks
2009-10
1045
9
1060
54
2010-11
1150
0
1121
83
2011-12
1210
0
1227
66
2012-13
1220
0
1238
48
2013-14P
1275
0
1270
53

P: Projection    Source: USDA, SEA and industry sources
 
Major Markets
 
Spot markets: Akola, Parbhani, Nagpur, Yawatmal 
Futures trading: NA
 
External trade
 
Major export destinations: NA 
Major import sources: NA
 
Cake or Meal
 
Cottonseed oil cake (COC) or kapasia khalli is the by-product of seed after extracting oil. It is used as a feed for livestock and fertilizer. Cottonseed meal produced in India is completely consumed domestically.
 
Table 5: Trends in demand and supply of meal in the world (‘000 tonnes)

 
Production
Imports
Exports
Consumption
End Stocks
2009-10
13805
372
377
13720
193
2010-11
14828
488
424
14903
182
2011-12
15700
423
509
15582
214
2012-13
15758
390
470
15723
169
2013-14P
15481
380
398
15479
153

P: Projection    Source: USDA
 
 
 
Table 6: Trends in demand and supply of meal in India (‘000 tonnes)

Year
Production
Consumption
Exports
End Stocks
2009-10
3429
3425
4
5
2010-11
3750
3694
56
60
2011-12
3940
3927
13
69
2012-13
3990
3960
30
43
2013-14P
4170
4165
5
35

P: Projection    Source: USDA, SEA and industry resources
 
 
Major Markets
 
Spot markets: Akola, Parbhani, Nagpur, Yawatmal
Futures trading: MCX and NCDEX.
 
External Trade
 
Major export destinations: NA
Major import sources: NA
 

 

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