In 2014, India overtook China to become the largest cotton producer globally and accounts for 25% of the area under cotton globally. Engaging over 6 million smallholder farmers in 8 states and approximately 40-50 million people in processing and trade, cotton is a vital cash crop to the country’s economy.
India remains a major sourcing area for the BCFT brand partners. In 2014, the Fast Track Fund invested 3.2 million Euro (47% of the fund value) in 25 projects across 6 states. 247,000 MT lint of Better Cotton was licensed*, out which 91,000 MT lint was taken up by ginners – a significant increase from last
season. The projects covered an area of 338,000 hectares and 200,000 farmers were licensed to produce Better Cotton (91% of the total farmers trained in the Better Cotton production principles).
As India is one of the key sourcing markets for Better Cotton the Investor Committee has been strategically working to increase the amount of Better Cotton being harvested in India. We have seen the results of this plan with the expected increasing output
increasing by over 70% to 247,000 MT and is expected to double again in the coming season.
On the demand side, due the abundant supply of Better Cotton, conversations on price differentials were practically non-existent and suppliers have been using the Mass Balance Administrative system to procure Better Cotton at market price.