Asian Journal of Agricultural Extension, Economics &

Sociology

Volume 41, Issue 10, Page 1005-1013, 2023; Article no.AJAEES.108091

ISSN: 2320-7027

Unravelling the Challenges in Cotton

Processing Industries: A
Comprehensive Constraint Analysis
Shwetha M. N. a*, I. Shakuntala Devi a++, T. Lavanya a#
and A. Meena b++
a
Department of Agricultural Economics, College of Agriculture, Professor Jayashankar Telangana
State Agricultural University, Rajendranagar, Hyderabad, Telangana, India.
b Department of Statistics and Mathematics, College of Agriculture, Professor Jayashankar Telangana

State Agricultural University, Rajendranagar, Hyderabad, Telangana, India.

Authors’ contributions

This work was carried out in collaboration among all authors. All authors read and approved the final
manuscript.

Article Information
DOI: 10.9734/AJAEES/2023/v41i102254

Open Peer Review History:

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Received: 20/08/2023
Original Research Article Accepted: 27/10/2023
Published: 01/11/2023

ABSTRACT

The textile industry is one of India's oldest industries and has been there for a long time. Cotton has
a major economic influence in India, where it is mostly used in the textile sector. One of the most
often produced and exported items from India is cotton yarn. The goal of the current study is to
examine and record the challenges faced by the cotton processing units along the value chain of
the crop. The study was conducted in Adilabad and Nalgonda districts of Telangana state. The
required data was gathered from a sample size of 10 ginning mills, 10 spinning mills, 10 weaving
mills, one dyeing and printing mill and one garment manufacturing unit, using well-structured and
_____________________________________________________________________________________________________
++
Assistant Professor;
#
Associate Professor;
*Corresponding author: E-mail: [email protected], [email protected];

Asian J. Agric. Ext. Econ. Soc., vol. 41, no. 10, pp. 1005-1013, 2023
 Shwetha et al.; Asian J. Agric. Ext. Econ. Soc., vol. 41, no. 10, pp. 1005-1013, 2023; Article no.AJAEES.108091

pretested schedule by personal interview method. To analyze the collected data Garrett ranking
methodology was employed. The research found that, higher cost of machinery, higher rate of
interest, exorbitant prices of raw material, underutilization of installed capacity, higher working
capital requirement, shortage of electricity, lack of technical human resource, competition from the
big and organized sector and lack of marketing cooperatives were the major problem faced by the
different processing units of cotton. Therefore, the study suggests that the government provide
subsidies for the purchase of machinery, at least for small-scale businesses, impart training to the
youth and establishment of marketing cooperative at every successive stage of the cotton
processing in order to make the processing units more competitive in business.

Keywords: Cotton processing; Constraints; Garrett ranking; Ginning; Weaving.

1. INTRODUCTION per cent and it depends on cotton cultivar and

environmental conditions [8,9]. After ginning
One of India's oldest and largest manufacturing process, the leftover seed is called as fuzzy
industries is the textile and apparel sector and cotton seed which may be used directly for
this sector has a pivotal role in the Indian feeding of adult cattle or further processed into
economy. India’s textile and apparel export different by-products like seed meal (45%), hull
stood around US$ 44.4 billion in the financial (26%), oil (16%) and linter (9%) while remaining
year 2022. The textiles industry has employed 4 per cent is lost during processing [10].
around 4.5 crore workers, which includes 35.22
lakh handloom workers across the country. The Following the ginning process, the next
sector utilizes cotton as one of the major raw processes are spinning (the process of turning
materials along with some other natural fibres lint into yarn), weaving (the process of turning
like jute, silk and wool and synthetic fibres like yarn into greige fabric), dying and printing (the
polyester, viscose, nylon and acrylic [1,2]. process of turning greige fabric into finished
fabric), and lastly garment manufacturing (the
India is the largest producer of cotton in the process of turning finished fabric into various
globe. The crop which is vital to both economy readymade garments). These processing plants
and the life of cotton farmers. [3]. Cotton in India are crucial links in cotton industry's value chain
is grown on more than 13.06 million hectares [11].
compared to 32.21 million hectares worldwide
[4]. The cotton textiles sector in the nation, However, the low productivity, which is primarily
supporting the livelihoods of an estimated 6.5 the result of subpar farming practices, limits the
million cotton farmers and also contributing to total expansion of the cotton business. Due to a
sizable export market [5,6]. During the cotton shortage of seed cotton, processing units are
season 2022–2023, an estimated 343.47 lakh forced to work below capacity, which negatively
bales were produced and domestic consumption impacts every step of the value chain. Currently
was estimated at 311.17 lakh bales in the same ginning units are working only for 4-7 months in a
financial year. By 2030, India's anticipated cotton year. Thus, increasing the cost of processing and
production would be 423.52 lakh bales, spurred lowering the competitive edge of processing units
by rising consumer demand. Gujarat, and this has the spiraling effect on the other
Maharashtra and Telangana are the three major processing units in the value chain of cotton.
cotton producing states in the country. In the Moreover, the clothing industry is facing
Southern zone, Telangana state produces the additional difficulties as a result of the unique
most cotton and it is third largest in the country, characteristics of its market, including a short
contributing 53.13 lakh bales [ 2,4]. production life cycle, high volatility, low
predictability, and a rapid market response. The
Cotton supplies two important products namely, complexities and interdependence exist in the
cotton fibre and cotton seed. Separation of cotton textile industry further increase these constraints
fibre from the seed takes place at the ginning [12]. Therefore, it is necessary to research,
stage [7]. It is the first stage of the cotton record, and identify every constraint faced by the
processing. The obtained fibre from the ginning processing units. In this study an attempt was
process is called as lint. The percentage of lint made to study the constraints under 5 different
obtained from the seed cotton is called as categories viz., constraints faced at the time of
ginning out turn ratio, which ranges from 33-42 plant installation, constraints related to financial

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arrangement, constraints faced in procurement of 3.1 Details About Sample Processing

raw materials, constraints faced during Units
processing and constraints faced in marketing of
final products in order to come up with a suitable As depicted in the Table 1 during the ginning
solution. process the percentage of lint recovery from the
seed cotton is called as ginning out turn ratio
2. MATERIALS AND METHODS which was about 33.00 percent and seed
recovery was about 65.00 percent and the
The study was carried out in Adilabad and remaining 2 percent is the wastage. Actual
Nalgonda districts of Telangana state. The production of the sample ginning mills was 375
districts were specifically chosen because the bales per day and average capacity utilization of
concentration of processing units was more in the mills was 42.73 percent. During spinning
these areas. To gather the required primary data, process 75.00 percent of fine yarn and 25.00 per
a sample of 10 ginning mills, 10 spinning mills, cent of yarn wastage obtained and actual
10 weaving mills, 1 dyeing and printing mill, and production of the sample spinning mills was
1 garment production unit were chosen. All of 135.29 q yarn/day and average capacity
these respondents were interviewed in-person utilization was 83.15 percent.
utilizing a carefully prepared schedule to collect
the data. Whereas during weaving process, 97.00 percent
of fabric and 3.00 percent of wastage was
2.1 Garrett’s Ranking Technique obtained. The actual production of the sample
weaving mills was 635.12 meters fabric per day
To find out the most pressing constraints and estimated average capacity utilization was
encountered by the cotton processing industries, about 53.28 percent and during dyeing and
Garrett’s ranking method was used. printing the product recovery is 100.00 percent
Respondents were assigned ranks to the and capacity utilization of the selected dyeing mill
constraints faced by them, rank one meant most is only 24.66 percent. While during garment
important and last rank meant least important production 99 percent of the main product was
constraint. Then, the rank assigned to each obtained and 1 per cent was the wastage. Actual
constraint by each individual processor was production of the selected garment
changed to percent position by make use of the manufacturing unit was 165 shirts per day and
percent position formula. The estimated percent capacity utilization was just around 27.39
positions were translated into scores using percent.
Garrett’s table which was given by Garrett and
Woodworth. Then the mean values of the scores 3.2. Constraints Perceived Cotton Processing
were calculated. Finally, constraints were ranked Units in the Study Area
according the estimated mean values [13,14].
The constraints were studied under 5 different
100 × (Rij − 0.50) categories starting from plant installation to
Percent position =
Nj marketing of the product which they have
produced. Under each category respondents
Where, assigned ranks to the constraints faced by them
Rij = Rank given for the ith constraint (i= 1, and the same was analyzed by employing
2……n) by the jth individual (j = 1, 2 .…. n) Garrett ranking technique. The results of the
Nj = Number of constraints ranked by jth analysis are depicted in Table 2.
individual.
3.2.1 Constraints faced at the time of plant
3. RESULTS AND DISCUSSION installation

The basic details of sample processing units Majorly five constraints were listed under this
such as recovery percentage of main and by- category and ranked based on the Garrett means
product, actual production and average capacity score. The data in the Table 2 reveals that high
utilization are given in the Table 1. The cost of the machinery observed as the most
constraints faced by the different processing serious constraints for all processing industries
units, ginning, spinning weaving, dyeing and namely ginning, spinning, weaving and dyeing
garment manufacturing were depicted in the and garment manufacturing with the mean score
Table 2. of 68.00, 70.50, 69.00, 75.00 and 75.00

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Table 1. Details of processing units of cotton

S. No Particulars Ginning mill Spinning mill Weaving mill Dyeing mill Garment
manufacturing unit
1 Main product recovery (%) 33.00% 75.00% 97.00 % 100 % 99 %
2 By product recovery (%) 65.00% 25.00% 3.00% 1%
3 Actual production 375 bale/day 135.29 q yarn/day 635.12m fabric/ day 165 shirts/day
4 Average capacity utilization 42.73 % 83.15% 53.28 % 24.66% 27.39 %

Table 2. Constraints perceived by the cotton processing industries in the study area

S. Constraints Mean Rank Mean score Rank Mean score Rank Mean Rank Mean score Rank
No. perceived by the score (Spinners) (Weavers) score (Garment
cotton (Ginners) (dyers) manufacture)
processing units
Constraints faced at the time of plant installation
1 High price of land 60.70 Ⅱ 62.50 Ⅱ 66.00 Ⅱ 40.00 Ⅳ 50.00 Ⅲ
2 Lack of technical 44.70 Ⅳ 51.00 Ⅲ 48.00 Ⅲ 60.00 Ⅱ 40.00 Ⅳ
know-how
3 High cost of 68.00 Ⅰ 70.50 Ⅰ 69.00 Ⅰ 75.00 Ⅰ 75.00 Ⅰ
machinery
4 Problem in getting 47.30 Ⅲ 37.80 Ⅳ 38.80 Ⅳ 50.00 Ⅲ 60.00 Ⅱ
power connection
5 Cumbersome 28.80 Ⅴ 27.20 Ⅴ 27.20 Ⅴ 24.00 Ⅴ 24.00 Ⅴ
procedure for
getting licence
Constraints related to financial arrangement
1 Higher rates of 67.90 Ⅰ 35.00 Ⅳ 69.60 Ⅰ 73.00 Ⅰ 73.00 Ⅰ
interest
2 Insufficient 55.80 Ⅱ 43.00 Ⅲ 59.40 Ⅱ 27.00 Ⅳ 40.00 Ⅲ
finances from
institutions
3 Lack of subsidies 35.00 Ⅳ 66.70 Ⅰ 37.20 Ⅲ 56.00 Ⅱ 56.00 Ⅱ
and grants by
government

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S. Constraints Mean Rank Mean score Rank Mean score Rank Mean Rank Mean score Rank
No. perceived by the score (Spinners) (Weavers) score (Garment
cotton (Ginners) (dyers) manufacture)
processing units
4 Higher tax rate on 41.30 Ⅲ 55.30 Ⅱ 33.80 Ⅳ 44.00 Ⅲ 27.00 Ⅳ
raw material
purchased from
market
Constraints faced in procurement of raw material
1 Lack of assured 58.70 Ⅱ 44.70 Ⅲ 59.40 Ⅱ 56.00 Ⅱ 56.00 Ⅱ
supply of raw
material
2 Higher rates of 60.40 Ⅰ 67.90 Ⅰ 69.60 Ⅰ 73.00 Ⅰ 73.00 Ⅰ
raw material
3 Higher marketing 35.00 Ⅳ 30.40 Ⅳ 33.80 Ⅳ 27.00 Ⅳ 44.00 Ⅲ
charges and cost
4 Lack of quality of 45.90 Ⅲ 57.00 Ⅱ 37.20 Ⅲ 44.00 Ⅲ 27.00 Ⅳ
raw material
Constraints faced during processing
1. Shortage of 40.20 Ⅳ 27.20 Ⅴ 69.00 Ⅰ 24.00 Ⅴ 40.00 Ⅳ
electricity
2. Underutilization of 68.00 Ⅰ 37.80 Ⅳ 30.40 Ⅴ 40.00 Ⅳ 24.00 Ⅴ
installed capacity of
unit
3. Higher rate of 66.00 Ⅱ 51.50 Ⅲ 50.00 Ⅲ 50.00 Ⅲ 50.00 Ⅲ
electricity and fuel
4. Higher working 44.40 Ⅲ 70.50 Ⅰ 33.60 Ⅳ 60.00 Ⅱ 60.00 Ⅱ
capital
5. Lack of technical 30.40 Ⅴ 62.00 Ⅱ 66.00 Ⅱ 75.00 Ⅰ 75.00 Ⅰ
human resource
Constraints faced in marketing of final products
1. Lack of efficient 50.50 Ⅲ 58.70 Ⅱ 51.20 Ⅲ 44.00 Ⅲ 44.00 Ⅲ
market for final
produce
2. Competition from 63.80 Ⅰ 51.70 Ⅲ 63.80 Ⅰ 73.00 Ⅰ 73.00 Ⅰ

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S. Constraints Mean Rank Mean score Rank Mean score Rank Mean Rank Mean score Rank
No. perceived by the score (Spinners) (Weavers) score (Garment
cotton (Ginners) (dyers) manufacture)
processing units
big players and
organized sector
3. Lack of marketing 58.70 Ⅱ 62.60 Ⅰ 60.40 Ⅱ 56.00 Ⅱ 56.00 Ⅱ
cooperative
4. Non-availability of 27.00 Ⅳ 27.00 Ⅳ 27.00 Ⅳ 27.00 Ⅳ 27.00 Ⅳ
efficient transport
by road

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respectively. The next main problem for ginning, 3.2.4 Constraints faced during processing
spinning and weaving industries was high price
of the land with the mean score of 60.70, 62.50 The results regarding the constraints faced
and 66.00 respectively, while dyers and garment during processing were evident in the Table 2.
manufacture ranked lack of technical know-how The data in the table shows that the major
and problem in getting the power connection as problems for ginners were underutilization of
their second major constraints respectively. The processing unit with the score of 68.00 followed
constraint cumbersome procedure for getting by the high rate of electricity and fuel with the
license is considered as lower order constraint by mean score of 66.00. However, the major
the processing industries. problem for spinners were high working capital
followed by the lack of technical human resource
3.2.2 Constraints related to financial with the mean score of 70.50 and 62.00
arrangement respectively. While weavers confronted by
shortage of electricity and lack of technical
The major financial constraints for the ginners human resource with mean score 69.00 and
were higher rates of interest followed by 66.00 respectively. The dyers and garment
insufficient finance from the institutions with the manufacture majorly facing lack of technical
means score of 67.90 and 55.80. While, for human resources (75.00) and higher working
spinners the prime problems were lack of capital (60.00) issues with the processing. The
subsidies and grants by the government and study conducted by [17] reported inadequate
higher tax rate on raw material with the mean supply of properly trained staff, difficulties in
score of 66.70 and 55.30 respectively. Again, obtaining work permits, and insufficient capital as
higher interest rate was the most important a major problem for garment manufacturing
constraint for weavers, dyers and garment units.
manufactures with the mean score of 69.60,
73.00 and 73.00 respectively. Second major 3.2.5 Constraints faced in marketing of final
problem for the weavers was insufficient finance products
from the government (59.40) while for dyers and
garment manufactures lack of subsidies and It is apparent from the Table 2, The first major
grants by the government (56.00) was the problem for ginners, weavers, dyers and garment
second major constraint. The above results were manufactures was competition from big players
in accordance with the [15] reported insufficient and organized sector with the mean score of
investment, improper quality control system, high 63.80, 63.80 73.00 and 73.00 respectively
cost of production, high interest rate and souring followed by absences of marketing cooperative
electricity prices were the main constraints of the with the mean score of 58.70, 60.40, 56.00 and
ginning mills. 56.00 respectively. However, for the spinners,
absence of marketing cooperatives and lack
3.2.3 Constraints faced in procurement of raw efficient market for the final produce were the
material crucial problem with the mean score of 62.60 and
58.70 respectively. The constraint non-availability
Table 2 highlights that the first major constraint of efficient transport by road was given last rank
for all processors, ginners, spinners, weavers, by the processing industries. The study done by
dyers and garment manufactures was high price [18] reported the major challenges of power loom
of raw material with the mean score of 60.40, industry were lack of proper marketing facilities,
67.90, 69.60, 73.00 and 73.00 respectively. The lack of management skills, irregular power cuts
next vital problem for all processing units except and shortage of raw material.
spinners was lack of undisturbed supply of the
raw materials while for spinners lack of quality 4. CONCLUSION
raw material (57.00) was the second major
problem. The problem of higher marketing Every processing units of cotton reported high-
charges and cost is perceived as least bothered cost machinery and high price of land as the
constraint by the processing units. The similar major constraints at the time of plant installation.
results were observed in the research Therefore, the government should provide
conducted by [16] reported fluctuation in the subsidies for purchase of the machinery at least
prices, raw materials shortage and liquidity for small sized units and allocate the site on rent
problem were the significant problems of the basis for establishment of these units. Also train
spinning mills. the youth to develop the skillset for running the

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