global supply chain, graduate design management, SCAD, luxury fashion graduate project, India cotton

1. India’s Challenges in Cotton Production
Global Supply Chain Case Study for the Fashion Industry
Aidenn Mullen / FASH 503 / Spring 14’ / Professor Greene

2. India’s Challenges in Cotton Production
Global Supply Chains for the Fashion Industry
Aidenn Mullen / FASH 503 / Spring 14’ / Professor Greene
Today, the majority of the world’s cotton (75%) is grown in India, China and Bangladesh.
India’s cotton production has grown 300% in the past 10 years, staying even on levels of
consumption and production and a steep downturn in export quantity.
Text

3. Aidenn Mullen / FASH 503 / Spring 14’ / Professor Greene
There are 4 stages of cotton progression
Raw Cotton and Ginning
Spinning
Weaving
Garments
There are 4 challenges for India’s cotton stages
Volatile prices,
dependence on
conventional prices
Varied Product Mix & Demand
Lack of dedicated facilities
Slow to sustain higher revenues

4. India’s Challenges in Cotton Production
Global Supply Chains for the Fashion Industry
Aidenn Mullen / FASH 503 / Spring 14’ / Professor Greene
The global reliance on India’s Cotton production could
present critical challenges for low cost garment manufacturing.
Crop Sustainability
Price
Quality
Geographical Access

5. India’s Challenges in Cotton Production
Global Supply Chains for the Fashion Industry
Aidenn Mullen / FASH 503 / Spring 14’ / Professor Greene
The global reliance on India’s Cotton production could
present critical challenges for low cost garment manufacturing.
Production
Yields
Price
Quality
Employment
Cotton yields in India are forecasted
to plummet 20% in 2014.
China is the lead importer of raw
cotton from India due to lack of tax.
India is expected to surge in the amount of rural
female cotton workers.

6. India’s Challenges in Cotton Production
Global Supply Chains for the Fashion Industry
Aidenn Mullen / FASH 503 / Spring 14’ / Professor Greene
The global reliance on India’s Cotton production could
present critical challenges for low cost garment manufacturing.
Global Markets
Price Surge
India Crop Explotation
Lack of Infrastructure
Lack of Government support
Chinese buyers have struck deals with cotton
exporters paying typically $.06 cents less per pound
on average under contract.
India’s transport infrastructure remains inefficient
when compared to the overall surge in population.
Pakistan and Bangladesh are being starved from
India’s cotton crops in favor of higher price paying
China.

7. India’s Challenges in Cotton Production
Global Supply Chains for the Fashion Industry
Aidenn Mullen / FASH 503 / Spring 14’ / Professor Greene
Global forecast for India’s Cotton commodity market:
- China continues to buy more cotton yarn in efforts to bypass duties on raw fibre via future contract tools.
- In 2015, India’s cotton crops are forecasted to dip 20% as China proceeds to halt the “stockpiling” efforts of 2014.
- Factually, India’s cotton crops were historically high in 2012/11 at 12.9 million bales to 10.1 million bales in 2012/13.
- Factoring in typical theories of supply and demand, India’s 1 1/8 inch premium cotton prices
are higher than other international manufacturers / textile mills.
- India’s cotton quality is much higher than that of China and the rise in need for sustainable cotton crops will
increase it’s inherent value in the premium market.
- China has recently declared efforts to discontinue cotton commodity stockpiling by extending government rural
farmer subsidiary funds. China has also been forecasted for a downturn in cotton crop growth by 3.9 million bales.
- Key solutions in the battle for global cotton include the deliberate slow stock release by
farmers to compensate for better export demand prices in the eastern cotton market.

8. India’s Challenges in Cotton Production
Global Supply Chains for the Fashion Industry
Aidenn Mullen / FASH 503 / Spring 14’ / Professor Greene
Works Cited:
BUSINESS LINE : Will China’s yarn demand help cotton bloom?
http://www.thehindubusinessline.com/markets/commodities/will-chinas-yarn-demand-help-cotton-bloom/article5635380.ece?css=print
Reuters : India’s cotton seen up on export demand, thin supply
http://in.reuters.com/article/2014/01/06/india-cotton-idINL3N0KG2SB20140106
Rueters : India’s cotton exports hit as China shifts policy
http://in.reuters.com/article/2014/04/17/india-cotton-exports-idINL4N0MP2MK20140417
Texoprocil Study finds Robust figures for Cotton Yarn Export from India, Outlook bright
http://www.pr.com/press-release/560415
Challenges in Cotton Production & Marketing, Policies & Strategies for Sustainable Cotton Farming
http://www.slideshare.net/donthinreddy/cotton-issues-in-india?qid=ec66edc6-5fa9-402b-944e-07590a877cf0&v=default&b=&from_search=7