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How to Start a Cotton Export Business In India?


Introduction: Cotton Export Business in India

India is a global producer and exporter of cotton globally, solidifying its significant role in the cotton export market. India's cotton export sector is vital to the nation's economy by creating job prospects and producing revenue through foreign exchange. India's cotton exported sector thrives due to strong infrastructure, including modern ginning and pressing plants, textile factories, and shipping ports. The main areas for the cotton industry in India are Gujarat, Maharashtra, and Andhra Pradesh, with Gujarat leading as the top cotton producer in the nation.

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Purpose of Cotton Export Promotion Council (TEXPROCIL)

The TEPC (Cotton Export Promotion Council) is the highest authority in the cotton textiles sector of India. Established in 1954 by the Indian government, its main aim was to support and safeguard the Indian cotton textiles industry's interests on a national and global scale. The main roles of Texprocil consist of promoting market growth, encouraging exports, and offering assistance to exporters.

Different services like market intelligence, export documentation, quality certification, and financial assistance are offered to exporters for export promotion activities. Enrolling with TEXPROCIL can offer numerous advantages to Cotton exporters including market information access, export promotion activities, financial aid, and additional support services.

Procedure for Exporting Cotton Goods 

Before exporting cotton and its related products from India, it is necessary to consider the following steps.

  • Acquire essential permits and certifications.

To export cotton products from India, one must acquire essential licenses and registrations including:

  1. Import Export Code (IEC),
  2. Registration Cum Membership Certificate (RCMC)
  3. Goods and Services Tax (GST) registration.
  • Determine the market and pinpoint the specific customers to focus on.

Identifying the target market and customers for Cotton products is crucial. Investigate the market demand, competition, and regulations in the intended market to guarantee a successful export plan.

  • Recognize and choose Cotton items for export

Different varieties and qualities of cotton goods can be found. Determine the product with strong demand in the market you are targeting and verify that it aligns with the quality standards and regulations of the country it will be sold.

  • Source materials and produce Cotton goods

Coconut husks and Cotton fiber from local suppliers can be obtained as raw materials for Cotton products. Make sure the production process adheres to quality guidelines and fulfils the regulations of the receiving nation.

  • Packaging and branding

Packaging and labeling are essential for the export of Cotton products. Make sure the packaging is robust, and the labeling adheres to the rules of the country it is being shipped to.

  • Shipping and transportation of goods.

Choose a trustworthy shipping and logistics service that can effectively manage the export process and guarantee the timely delivery of products to the destination country.

Difficulties faced by Exporters in Cotton Export Business

In recent years, the cotton export business in India has been confronted with several challenges. These include:

  • The difficulty of sourcing input materials: India's cotton industry is heavily dependent on imports, as the country does not have sufficient land for crop production. The industry is vulnerable to changes in global prices and shortages of supplies as a result of this dependence.
  • Demand fluctuations: Depending on international market conditions, demand for cotton exports is highly variable. Therefore, it is difficult for exporters to predict sales and set their production level in line with them.
  • Lack of infrastructure: One of the major challenges facing the cotton export business in India is the lack of adequate infrastructure. To meet the needs of this sector, there is a shortage of warehouses, ports, and additional facilities. This leads to delays and interruptions of shipments in many cases.
  • Competition from other countries: Other major cotton producing countries such as China and Brazil are competing hard with India. In terms of costs, quality and logistics, these countries have a distinct advantage over India. 
  • Strict quality regulations: The Indian textile industry is regulated by strict quality standards which have been laid down by the government. This means that exporters have difficulty in meeting all the standards necessary and obtaining export authorization for their products.

Steps to Start Cotton Export Business 

In India, cotton is one of the most important crops, and the country is one of the largest producers and exporters of cotton in the world. There are a couple of things you need to do if you want to start exporting cotton from India.

  • Study the global cotton market: where demand is coming from and what prices are to be paid.
  • Make contact with exporting companies in India: you will have to work with an exporting company that can get your product on the market.
  • Obtain Export License: You must apply for an export license from the Indian Government Export Inspection Council to export cotton originating in India. 
  • You need to find buyers for your product: Once you have the product prepared, it needs to be found by customers who want to buy it. Trade shows, internet directories, or working with a broker or agent may be used to do this.

Documentation Required for Cotton Exports 

Producers must obtain a letter of credit from the Bank of India and present it to the buyer's bank for cotton exports out of India. A recognized Foreign Bank is required to sign the letter of credit. An export licence from the Indian Ministry of Commerce must also be obtained by producers. The license shall be valid for one year, allowing the cotton producers to export an indicated quantity.

  • Trade Code for Importing and Exporting
  • Registration paired with membership
  • Certificate (Registration-Cum-Membership Certificate)
  • Cotton Corporation of India, also known as CCI.
  • License granted by the DGFT for advancement.
  • Shipments receipts
  • Document confirming the source of a product
  • Establish an electronic payment account with a government-owned bank.

Advice on how to make your Indian Export Business Successful in India

As the world's second-largest cotton producer, is an obvious choice for anyone wishing to start a cotton exporting business. But to succeed, there are a few things you need to keep in mind.

  • Firstly, understanding the Indian market is important. What types of products are in demand at this time? What's the buyer's preference like? What's the way the competition works? You will gain a better understanding of these factors and will be able to make better business decisions by conducting market research.
  • Secondly, you need to build strong relationships with your suppliers. Small farmers often produce cotton in India, so you have to establish good relations with them. This way, you'll have a consistent supply of quality cotton to choose from.
  • Thirdly, choose a suitable logistics partner. A reliable and experienced logistics partner who will handle all aspects of transport and customs clearance needs to be found when shipping cotton from India. Otherwise, your shipments might have been delayed or even lost.
  • Fourth, don't be too impatient. It's going to take time to get to know each other, to find suppliers, to build an inventory, and to get everything in order. Do not expect immediate results; concentrate on building a strong foundation for sustained success in the future.


Starting a cotton exporting business in India would be of great benefit. Cotton is a highly sought commodity in the world and India has an opportunity to exploit it through its natural abundance of raw material. Indian businesses can leverage their access to global markets through the establishment of supply chains and infrastructure, thereby creating employment opportunities for local communities. In addition, now might be the right time to launch an export business based on cotton products from India due to positive macroeconomic factors in place and increasing free trade agreements!

This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law.


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