Kapas


Kapas Intro Icon
Kapas

Overview

  • 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.
Kapas Factor Icon
Kapas Factor Icon

Factors Influencing the Market

  • 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.

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