Cotton candy prices fell by 1.14% to ₹54,670 due to profit booking and concerns over a shrinking domestic crop. The Cotton Association of India (CAI) revised its production forecast by 4 lakh bales to 291.30 lakh bales, mainly due to reduced output in Maharashtra.
Despite the lower crop outlook, prices saw limited upside due to weak mill demand and ample current stocks. As of March-end, the total cotton supply stood at 306.83 lakh bales. Imports for the current season are expected to surge to 33 lakh bales, reflecting concerns over crop shrinkage.
Exports are projected to decline sharply to 16 lakh bales, and the estimated closing stock for 2024-25 has been lowered to 23.49 lakh bales, indicating tightening domestic availability. Global production and consumption forecasts have also been reduced, particularly due to lower demand from China and Indonesia.
