Cotton candy prices rose 1.48% to 58,860, driven by concerns over declining acreage and supply tightness. The Kharif cropping season’s cotton acreage dropped by 9% to 110.49 lakh hectares, down from 121.24 lakh hectares last year.
The Cotton Association of India predicts a total acreage of around 113 lakh hectares for this season. Due to lower cotton yields and production costs, farmers are shifting to other crops.
The upcoming season’s cotton balance sheet is expected to be tight due to increased exports to Bangladesh, which have increased from 15 lakh bales to 28 lakh bales this year. This surge and reduced acreage could lead to a tighter supply situation.
India’s cotton production and consumption are estimated at around 325 lakh bales, and the total available cotton stock is estimated at 70 lakh bales. If the new crop is delayed, the supply could become even tighter.
