In the commodity exchange when one refers to fibre, cotton is what they imply. India is considered the largest global producer of cotton fibre, which is not only consumed locally, but also exported around the world. The cotton fibre is processed into cotton yarn. The country generates a varying range of counts, which is the measure of cotton yarn in terms of its linear density; being a variation of 2 to 120 counts.
After cereals, the textile and clothing industry seems to hold a prominent place in the Indian economy. This includes:
-Manufacturing and production
-Foreign exchange revenue
In the year 2005, the fibre market in India is known to have generated an approximate revenue of Rs. 35,000-Crore, as a result of the 3100 Million kilos of yarn it produced that year. Of this the cotton yarn held 69 per cent of the market share and the mixed cotton yarn held 19 per cent of the market share value. 12 per cent was accounted for by the non-cotton fibre sector.
The country holds 17 per cent of the world’s share in cotton fibre export. The receiving nations primarily being China, Korea, Bangladesh, Egypt, Taiwan, Hong Kong, Mauritius, Japan, Israel, European Union and Turkey.
There are varied factors that determine the price fluctuations in cotton fibre. These include:
-Demand for export
-Fluctuation in the rate of the Dollar and other currencies
-Global consumption requirement
-Stock trading fluctuations