Due to profit booking following a recent spike fuelled by worries over decreased acreage in the current Kharif farming season, cotton candy prices fell by -0.53% to settle at 56,830. In comparison to 121.24 lakh hectares during the same period last year, cotton acreage has declined by about 9% to 110.49 lakh hectares, according to the Cotton Association of India (CAI). The entire area is anticipated to be approximately 113 lakh hectares this year, less than the 127 lakh hectares recorded last year. Cotton growers switching to other crops due to decreased yields and higher production costs is thought to be the cause of this change in acreage.
The cotton balance sheet for the opening stocks of the following year will be tight, according to CAI President Atul Ganatra, mainly because of increased shipments to Bangladesh. India’s surprise increase in cotton exports from 15 lakh bales to 28 lakh bales can be attributed to Bangladesh’s robust demand. India is expected to produce and consume 325 lakh bales of cotton in 2023–2024; exports are expected to be 28 lakh bales, while imports are expected to be 13 lakh bales. This difference would result in a reduction of last year’s stock. Additionally, the amount of cotton produced worldwide has been revised down by 2.6 million bales, mostly as a result of decreased production and area in India and the United States. It is predicted that global ending stocks will drop to 77.6 million bales in July, a decline of 5 million bales.
