CAI decreases cotton production and consumption projections

The cotton crop in India for 2022–2023 is expected to be 4.25 lakh bales (each weighing 170 kg) lower than the previous year, when 307.05 lakh bales were produced, due to forecast declines in production in Andhra Pradesh, Karnataka, and Haryana. The CAI predicted a decrease in cotton production for November in Punjab (0.75 lakh bales), Haryana (1 lakh), Rajasthan (0.5 lakh), Andhra Pradesh (1 lakh), and Karnataka (1lakh).

While it predicted exports at 30 lakh bales, down 13 lakh bales from the earlier projection of 43 lakh bales, the CAI kept its estimate of cotton consumption at 300 lakh bales compared to 318 lakh bales last year. The lower export forecast coincides with lower cotton prices. Spot cotton prices for the GUJ ICS­105 Fine 29mm variety were $63600 per candy (each weighing 356 kg), which is less than the $65800 noted the previous year.

Estimates from CAI place the overall number of arrivals between October and November at 50.29 lakh bales, with 1 lakh of those bales of cotton being shipped by November 30. The CAI has maintained its 12 lakh bale import estimate, which is down from 14 lakh bales in the previous crop year 2021–2022. Demand-wise, CAI predicted that mill consumption will be lower this season, at 280 lakh bales, compared to 293 lakh bales last year.

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