Vol. 7, Issue 8, Part D (2025)

The present study titled "Study on supply chain management of cotton in Guntur District of Andhra Pradesh" was undertaken to examine the marketing practices, cost structure, price spread, and constraints faced by banana growers in the region. Bananas, being one of the most commercially important fruits in India, serve as a major source of income for farmers in Anantapur district due to favorable agro-climatic conditions, fertile soil, and widespread cultivation. However, the marketing of cotton is often challenged by inefficient market linkages, high marketing costs, post-harvest losses, and limited producer share in consumer prices.
The cotton supply chain in Guntur, Andhra Pradesh, plays a vital role in the region’s agricultural economy and textile industry. This study explores the structure, efficiency, and challenges of cotton supply chain management (SCM) in Guntur, with a focus on key stages including cultivation, procurement, ginning, trading, and distribution. However, the sector faces challenges such as price volatility, poor storage facilities, limited access to market information for farmers, and dependency on intermediaries. The research highlights the need for improved transparency, digital integration, and government support to streamline the SCM process. Implementing better logistics, real-time data systems, and farmer cooperatives can enhance profitability and sustainability.
The supply chain begins with small and medium-scale farmers cultivating cotton, primarily during the Kharif season. Despite favorable climatic conditions, farmers face challenges such as fluctuating input costs, pest infestations, and dependence on monsoon rains. Post-harvest, the cotton is sold at local Agricultural Market Committees (AMCs) or through middlemen. The Cotton Corporation of India (CCI) also intervenes during price volatility to procure cotton at Minimum Support Price (MSP), providing a safety net for farmers.
Once procured, raw cotton is transported to ginning mills, where it is separated into lint and seed. Guntur houses several modern ginning and pressing units, but the sector still grapples with outdated machinery in many small units. Efficient logistics are crucial, as cotton must be moved swiftly to spinning mills across India or exported via ports like Chennai and Krishnapatnam. However, infrastructure bottlenecks and inadequate cold storage affect quality and cost-efficiency.