As a new harvest season starts in October 2023, more arrivals are expected, which will put downward pressure on prices. As a result, cotton prices decreased by 0.97% to 58,960. Given that India’s cotton exports touched a record low of 15.50 lakh bales in 2022–2023, the scenario regarding cotton exports has been concerning.
Despite supply improvements, the price fall is predicted to be constrained due to a poorer production outlook, with an expected decline in cotton production of between 8 and 10% from the previous year. The cotton harvest of 2023–2024 may have lower yields and lower quality due to factors like a dry spell in August–September and pink bollworm damage in North India.
The worldwide cotton industry is also battling decreased output and consumption, with estimates pointing to lower production and exports, particularly in the U.S. The Indian Cotton Federation predicts that during the 2023–2024 growing season, India will produce between 330 and 340 lakh bales of cotton. Cotton prices dropped by 0.62% to 27,942.65 Rupees in Rajkot, a significant spot market.
