Kapas

▪ Cotton cultivation began 5,000 years ago in India, Pakistan, Peru and Mexico. Given the universality of cotton price, it wields enormous influence on the world's economy.
▪ Kapas, also known as seed cotton, is unginned cotton which is white fibrous substance (lint) that covers the seed obtained from cotton plant. Ginning is a process that separates lint (1/3rd in weight) from the seed (2/3rd in weight). Lint, commonly known as rui in Hindi, is the raw material used in the manufacturing of cotton yarn or thread, which is further woven to make fabrics.
▪ Cotton is essentially grown for its fibre, which is used world over to make textile. Cotton fibre is one of the most important textile fibres, accounting for around 35% of the world’s total textile fibre used. Cotton's strength, absorbency and capacity to be washed and dyed, make it an adaptable raw material for producing a variety of textile products.
▪ Cotton seed is crushed to make cottonseed cake, which is used in livestock feed and cottonseed oil, which is the 5th major edible oil consumed in the world.

▪ The domestic demand supply scenario, inter-crop price parity, cost of production, price in international markets etc. are major factors that influence Kapas price in domestic market.
▪ Weather, pests, diseases and other risk factors associated with agricultural crops also have a bearing on Kapas production.
▪ Government policies on foreign trade and Minimum Support Price have significant influence on Kapas price in local market.
▪ Cotton yarn prices in domestic as well as overseas market influence Kapas price . Yarn price show a high correlation of more than 90% with Kapas price.