Cotton is a natural fiber. It is a versatile material that is used to make a variety of products such as mats, rugs, ropes, brushes, and other household and industrial goods. Cotton is a renewable and eco-friendly material that is biodegradable and can be recycled.

Overview of the Cotton Export Industry in India

Being one of the leading global contributors, India stands as a major force in the production and export of cotton. The country’s cotton export industry plays a pivotal role in its economy, fostering employment opportunities and contributing substantially to foreign exchange earnings.

The robust infrastructure supporting India’s cotton export industry encompasses modern ginning and pressing factories, textile mills, and well-equipped ports for efficient shipping. The key cotton-producing states in India include Gujarat, Maharashtra, and Andhra Pradesh, with Gujarat holding the position of the largest cotton producer in the nation. This strategic distribution further enhances India’s prominence in the global cotton market.

Steps for Exporting Cotton Products from India

Before exporting cotton and its allied products from India, several crucial steps must be taken into consideration:

  1. Obtain necessary licenses and registrations: Acquire essential licenses and registrations such as Import Export Code (IEC), Registration Cum Membership Certificate (RCMC), and Goods and Services Tax (GST) registration to comply with regulatory requirements for exporting cotton products from India.
  2. Identify the market and target customers: Conduct thorough market research to identify the target market and customers for cotton products. Understand the demand, competition, and regulations in the target market to formulate a successful export strategy.
  3. Identify and select cotton products to export: Assess the diverse types and grades of cotton products available and choose those with high demand in the target market. Ensure that the selected product meets quality standards and complies with the regulations of the destination country.
  4. Procure raw materials and manufacture cotton products: Source raw materials, such as coconut husks and cotton fiber, from local suppliers for the manufacturing of cotton products. Ensure that the manufacturing process adheres to quality standards and complies with the requirements of the destination country.
  5. Packaging and labeling: Recognize the significance of packaging and labeling in the export of cotton products. Ensure that the packaging is robust and complies with the labeling regulations of the destination country.
  6. Shipping and logistics: Choose a reliable shipping and logistics provider capable of efficiently handling the export process. Ensure that the selected provider can guarantee timely delivery of products to the destination country, meeting all requirements. Function of Cotton Export Promotion Council (TEXPROCIL)

The Cotton Export Promotion Council (TEXPROCIL)

serves as a government agency dedicated to fostering the growth and advancement of the cotton export industry in India. Texprocil undertakes pivotal functions, including market development, export promotion, and offering support services to exporters.

Texprocil extends a range of services to exporters, encompassing market intelligence, export documentation, quality certification, and financial aid for export promotion initiatives. Registering with Texprocil can yield numerous advantages for cotton exporters, including access to valuable market information, participation in export promotion activities, financial assistance, and various other support services.

How can Auriga Accounting help in setting up a Cotton export business from scratch?

Over some time, we have helped various import-export-oriented businesses set up their company and get their export license with respective authorities in India. Auriga Accounting is a “One Stop Corporate Solution” for all your business needs. With our team of experts and legal guidance, you don’t need to worry about paperwork at all.

  • Provide details & documentation
  • Submission of Fee
  • Issuance of certificates from respective boards/council

Frequently asked questions

What is the Fee For TEXPROCIL Registration?

The fee for member exporters is INR 20,060 and for registered exporters 10,620 respectively.

What are the documents required to start a cotton export business from India?

These are the following documents required to start a cotton export business in India.

  1. Company Incorporation/ partnership firm/ registration certificate
  2. IEC code
  3. RCMC from TEXPROCIL
  4. GST certificate

Role of TEXPROCIL in the cotton export business

TEXPROCIL provides various benefits to its members

  1. Market research
  2. Technology
  3. Funds
  4. Helps find new market

Do exporters of cotton products require IEC registration?

As per the guidelines of DGFT exporter-importers of all kinds of products require an IEC certification code.

 
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