Cotton candy prices rose by 0.5% to ₹58,610 due to concerns over reduced acreage in the Kharif season, down by 9% to 110.49 lakh hectares compared to 121.24 hectares last year. Farmers are shifting to other crops due to lower cotton yields and high production costs.
Increased cotton exports to Bangladesh have tightened the cotton balance sheet, with exports rising unexpectedly from 15 lakh bales to 28 lakh bales. India’s cotton production and consumption are estimated at 325 lakh bales each for the 2023-24 season, with imports at 13 lakh bales.
The gap from last year’s stock is expected to be reduced. Spinning mills, ginners, and the Cotton Corporation of India hold 25 lakh bales, while another 10 lakh bales are expected in August-September.
The 2024-25 cotton balance sheet shows lower production, consumption, and ending stocks globally, with 2.6 million bales reduced due to lower output in the U.S. and India.
