Fears of a production drop are driving up cotton prices

Amid worries about decreasing output, cotton candy prices yesterday settled up by 0.17% at 59180. India sowed 122.56 lakh hectares of cotton in 2023 compared to 124.82 lakh hectares in 2022, a decrease of roughly -1.82%. According to figures provided by the Cotton Corporation of India, cotton arrivals for the current season, which began in October last year, have already exceeded 318 lakh bales, according to the Southern India Mills’ Association (SIMA).

There would be 311.18 lakh bales of cotton harvested this season, according to SIMA Chairman. According to him, this is most likely the ginning production. In Punjab, arrivals were roughly one-third of the previous year (2021–2022). 8.7 lakh quintals of cotton have arrived in Punjab so far this year for the 2022–23 marketing season, compared to 28.89 lakh quintals for the entire 2021–22 marketing season.

According to the USDA’s weekly export sales report, net sales of cotton for 2023–2024 were 277,700 running bales, with rises mostly for China. Gujarat’s cotton farming has broken all previous records this Kharif season, which is a great accomplishment. A significant spot market in Rajkot saw the price conclude at 28697.8 Rupees, down -0.24%.

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