India is the second largest textile manufacturing and exporting country in the world next only to China has been facing challenges on the logistics cost front, especially transport of cotton from cotton growing States to cotton consuming States. The steep increase in diesel price has increased the lorry transportation cost. Though India is the largest cotton producing country and net exporter of cotton in the world, the domestic cotton textile industry could not derive competitive advantage due to the steep increase in cotton transportation cost. At the same time, countries like China and Vietnam could transport the cotton at a much cheaper cost in the international cotton trade. The average cotton transportation cost between Gujarat and China is far less than $200 for a 40-foot container having a capacity of 170 cotton bales each weighing 170 kg. (i.e., less than Rs. 100 per bale).