Due to increased demand and decreased crop output in the current season, cotton prices are predicted to reach 75,000 per candy by the middle of this year. India will soon cease being a net exporter of cotton due to its high consumption, according to Atul Ganatra, president of the Cotton Association of India. With fewer arrivals, cotton prices, which currently range between 62,500 and 63,000 per sweet, are anticipated to slowly increase. According to Ganatra, cotton prices could reach 70,000–75,000 per sweet in June–July.
Indian mills are witnessing strong demand as a result of increased consumption, despite the fact that global cotton prices are currently trading at a four-month low due to sluggish demand during the recessionary trend. The number of bales of cotton exported last year was 42 lakh, but this year that number may only be around 30 lacks. The high domestic pricing, though, could potentially cause a drop to 25 lakh bales. According to Kedia Commodities Director Ajay Kumar, spinning mills are currently operating at full capacity.
According to him, the market is going to India as China and Bangladesh slow down and the future of spinning mills appears bright. However, a portion of the cotton industry believes that cotton prices may remain at their present levels because arrivals this year are anticipated to continue into the offseason months of May through July.
“Farmers held back stocks this year, and they will gradually release them in the upcoming months. This shouldn’t be a problem, according to a trader who asked to remain anonymous. Anand Popat, a trader in cotton, yarn, and cotton waste located in Rajkot, claims that although arrivals were reduced last week due to rain in some areas, they are still hovering around 1.5 lakh bales.