TITLE OF THE PAPER: PROCUREMENT PATTERNS AND INFLUENTIAL DETERMINANTS IN THE COTTON INDUSTRY

Cotton is such a commercial crop that farmers, even in agro-climatic zones not suitable for cotton cultivation, grow cotton. This scenario underwent a change during the recent years due to heavy borrowings, over-investment in inputs and frequent crop failure. The cotton growers in India had to suffer severe and unbearable hardships. India is traditionally cotton producing country. Cotton crop sustains the country's cotton textile industry, which is perhaps the largest segment of organized industries in the country. India earns foreign exchange to the tune of $10-12 billion annually from exports of cotton yarn, thread, fabrics, apparel and made-ups. Cotton provides employment to millions of people in the country in the form of its cultivation, trading, processing, manufacturing, fabricating and marketing. This study is based on the cotton trading in the Guntur district of Andhra Pradesh. Guntur district is purposively chosen for the study for the kind of significance it receives in cotton cultivation and trading. This empirical paper examines how purchasing decisions are made by buyers. It is also an endeavour to understand influencing factors of purchasing patterns of various mills in Guntur.