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Cotton Seed |
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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)
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)
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)
P: Projection Source: USDA
Table 4: Trends in demand and supply of oil in India (‘000tonnes)
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)
P: Projection Source: USDA
Table 6: Trends in demand and supply of meal in India (‘000 tonnes)
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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