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Abstract
The modern global textile industry requires cotton with strong and consistent fibers in
order to produce high quality goods at the high speeds necessary to recover capital costs.
The introduction of high volume instrument (HVI) measurement of cotton fiber quality
has strengthened the link between cotton prices and attributes on world markets. The
spread of genetically modified (GMO) cotton in India has driven India to the second
ranked producer and exporter of cotton in the world. However, contamination and other
quality problems are endemic to Indian cotton. Using a unique data set of Indian cotton
prices and quality attributes from 5 Indian states, this study uses hedonic price modeling
to demonstrate that the linkages between cotton quality and price are weaker in India than
they are in the United States.