The difficulties India’s cotton sector suffered in the 2023–2024 season are reflected in Cottoncandy’s latest price hike of 1.05% to 57500. Reduced planted area and the effects of El Nino weather on productivity are the reasons for the anticipated 7.5% drop in cotton production to 29.5 million bales.
This underscores the pressure on the domestic cotton supply, as stated by the Cotton Association of India (CAI), which also projects a rise in imports to 2.2 million bales, up from 1.25 million bales last year. The U.S. anticipates slightly reduced demand but higher production and ending stocks, which will cause changes in the global cotton market.
Lower consumption, higher output, and higher stocks are observed globally; India’s higher beginning stocks are partly attributable to a rise in production over the preceding season. Compared to the government’s third advance estimate of 34.3 million bales, the CAI’s final estimate of India’s crop production for 2022–2023 is somewhat higher at 31.8 million bales.
There are also clear regional issues; for example, low rainfall in north Maharashtra is predicted to result in a 25% decrease in cotton production. Cotton prices closed at 26908 Rupees in Rajkot, a significant spot market, reflecting a minor decrease of -0.2%.
