Cotton prices rose by 0.26% to ₹57,200 due to concerns over reduced acreage in the Kharif cropping season. The Cotton Association of India reported a 9% decrease in cotton acreage, which is expected to be around 113 lakh hectares this year.
This decline is primarily due to lower yields and high production costs. India’s cotton balance sheet is expected to tighten next year due to increased exports to Bangladesh, which have increased from 15 lakh bales to 28 lakh bales.
India’s cotton production and consumption for 2023-24 are estimated at around 325 lakh bales, with spinning mills holding 25 lakh bales, ginners, and the Cotton Corporation of India having 15 and 20 lakh bales, respectively. Any delays in the new crop could tighten the supply situation.
