Assessment of Cotton Availability for Domestic Demand in India for Generating value Addition

Export is undoubtedly essential for any nation to strengthen economy. It leads to healthy competition in the market and maintains BOP (balance of payment). Agricultural exports contribute around 13% to India's total export earnings. Export of cotton can earn foreign exchange for India. But the other side of reality is that there is high demand for raw cotton in domestic industries. India should therefore emphasize on increasing cotton production for fulfilling cotton requirement to facilitate boost in value added product. Export of yarn, fabric, garment, home furnishing and other value added product from cotton will earn more revenue than raw cotton. It is imperative and advisable that raw cotton should be exported only after fulfilling domestic demand. An attempt has been made to analyze the relationship between different variables by using Karl Pearson's correlation coefficient and multiple correlation coefficient. For this purpose t and F tests have been used for correlation coefficient and multiple correlation coefficient respectively to examine the level of significance among the variables.