Value Addition to Cotton in Telangana State: An Economic Analysis

Aims: The following study was taken up to quantify the value addition to the seed cotton at various stages of processing in the Telangana state and to workout cost and returns of cotton processing at different stages. Methodology: A sample of 10 ginning mills, 10 spinning mills, 10 weaving mills, one dyeing and printing mill and one garment manufacturing unit were chosen for the study. Using a structured schedule, the required information was collected by the respondent by employing personal interview technique. The data collected from various processing units was presented in tabular format and the economics of the processing units were estimated using a simple tabular analysis. Results: Cotton is one such crop which undergoes multiple level of processing from ginning to garment manufacturing. The final product of one level serves as the raw material for the next level. The value addition during ginning, spinning, weaving, dyeing and printing and garment manufacturing was estimated at Rs 401.24/q seed cotton, Rs. 3,138.65/q lint, Rs. 5,292.79/q yarn, Rs. 5,573.52/q greige fabric and Rs. 11,082.35/q finished fabric respectively. It was also estimated that the total net value addition to one quintal of cotton at various stages was Rs. 6745.62. Conclusion: The cost incurred towards processing and value addition per unit was increased along different stages of the processing. Highest value addition was seen in garment manufacturing unit followed by dyeing mill, weaving mills, spinning mills and ginning mills.