Cotton candy sales rose by 0.15% on expectations of lower local supplies. The Cotton Association of India (CAI) has cut its domestic crop estimate for 2024–25 by 4 lakh bales to 291.30 lakh bales (170 kg each) due to lower Maharashtra production. With imports at 25 lakh bales, the total supply of cotton, including opening stock and imports, is expected to be 306.83 lakh bales till March-end. By March-end, domestic stocks stood at 127.83 lakh bales, most of which were held by trade and government bodies.
The CAI estimates that only 16 lakh bales will be exported in the 2024–25 season, much lower than the previous year’s 28.36 lakh bales, indicating a decline in export demand. The increase in imports, now forecast to more than quadruple to 3.3 million bales for the season, further offsets this weaker export forecast and shows a reliance on foreign supplies in the face of domestic shortages. Cotton production and consumption are forecast to remain on a downward trend globally, while stocks have increased somewhat, due to sluggish demand from key users such as China and Indonesia.
