Cotton Sector Needs 3 Vs
October 18, 2022 Recent months have seen high cotton drama regarding price volatility and demand. As cotton is a natural fiber, its availability depends on weather and other uncontrollable situations. However, these aspects have also given room to high volatility and uncertainties that are influencing the entire cotton and textile supply chain. Adding to these expected pains, the ongoing war in Europe has added more volatility to the sector.
While the entire cotton segment is under the grip of uncertainties, the current scenario calls for self-introspection and solid planning ahead.
Need for 3Vs
Prior to inflation reaching a 40-year high 9% in some parts of the world, the textile sector focused predominantly on the supply side of the equation such as the availability of raw materials, labor force, and energy issues. Given the finite amount of arable land due to the growing need for food grains and an ever-rising global population, land for other cash crops is always stressed. China is a good example of this situation, which necessitates importing cotton and food grains such as soy to satisfy its domestic demand.
The textile sector will be under a tight supply of cotton, which provides necessary price value for cotton in addition to its inherent technical advantages. Cotton is natural, biodegradable, and comfortable. Cotton is pre-sold on its breathability value, which makes it a preferred fiber despite its relative cost issue with some synthetics.
Availability of arable land, some limitations in the product range, market volatility, and competition from synthetics all influence the cotton sector. Given this scenario, our industry should focus on three Vs: 1) Value utilization, 2) Value creation, and 3) Value addition.
Value Utilization
The cotton sector from farm to fashion should utilize its fullest value. At the farm level, countries like India need to increase the yield/acre by increasing efficiency with the use of fertilizer, pesticides, and water to maximize return on investment. India has the largest land area dedicated to cotton compared to other major cotton producing countries, but with the least yield. Yield enhancement should be a public/private partnership initiative in India to help deliver cost effective, next generation, value-added seed to farmers. Creating and disseminating knowledge about best farm practices such as fact-based agronomic approaches, seed selection, and farming and irrigation techniques must be widely transmitted to practitioners such as farmers, researchers, and policy makers. Active involvement at the grassroot levels during the growing season is vital for the growth of agriculture, much like the activity of Plains Cotton Growers, Inc. in Lubbock, TX.
Value Creation
While value utilization focuses on using the existing resources to improve the sector, value creation is aimed at creating new opportunities. Cotton is predominantly used as apparel textiles. A way to increase its demand is to find new opportunities in the farm to fashion sectors and beyond such as industrial textiles.
As is evident from the ongoing inflationary cycle, demand for goods – particularly nonpriority items – has come down. Cotton is subjected to such stressful situations and is also sensitive to price pressures from competing synthetic and regenerative fibers. In the mid- to long-term, it is important to enhance the demand for cotton in non-traditional areas. Recently, cotton industry is focused on finding applications in the industrial, medical, automotive, and defense sectors. United States-based Cotton Incorporated is conducting projects in nonwovens to help enhance demand for cotton.
An INDO-United States collaboration between Texas Tech University and Jayalakshmi Textiles in Aruppukkottai, India has resulted in a sustainable cotton-based oil absorbent material. This product has been evaluated at ONGC facilities in the Thiruvarur and Rajahmundry areas in India.
Value Addition
The downstream processes in the textile sector can help with value addition to find new markets and opportunities. Saltless dyeing and waterless finishing technologies can be utilized to generate sustainable and high-end products. Leading brands are looking for opportunities to develop products that have consumer appeal and can be marketed as “green” products. New finishing technologies like atmospheric plasma can help with selective surface characteristics with less or no water usage. Cotton, being biodegradable, provides opportunities for brands to develop value-added products.
While the present economic situation put enormous stress on the textile sector, it provides a valuable lesson that we should focus both on the supply and demand sides of the textile equation.
(Author’s note: A longer version of this article appeared in the Souvenir of the Cotton Association of India’s Centenary Celebrations, Inaugural Event, Mumbai, India, Oct. 18, 2022)
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