The Cotton Association of India (CAI) has projected a grim outlook for the cotton crop in the upcoming year, with an expected drop of nearly 10 percent in overall sowing. This follows a record-low production of 29.41 million bales in the 2023-24 season, marking the lowest in 15 years. The decline in yields and low price realisation are the primary factors contributing to this unsettling trend.
During the kharif season, after the arrival of monsoons, cotton crop cultivation takes place, spanning the cotton marketing season from October to September. Government data reveals that cotton crop sowing in the 2023 kharif season covered approximately 12.38 million hectares, over 3 per cent less than the previous year. CAI President, Atul Ganatra, expressed concern over the potential decrease in cotton sowing and its subsequent impact on production.
CAI’s latest crop committee report estimates a further 8 per cent reduction in cotton production for the 2023-24 season, resulting in a total of 29.4 million bales. Ganatra emphasised the urgent need to address the significant challenge faced by the Indian cotton industry: increasing domestic production. India holds 38 per cent of the world’s cotton acreage, yet its per-hectare yield falls far behind the global average. Ganatra attributes this to outdated BT seed technology, climate change, the El Niño effect, and attacks from pink bollworms.
Furthermore, the underutilization of domestic production capacity is impacting textile mills, which are unable to meet the demand for cotton. CAI’s assessment indicates that the textile industry would require around 41.4 million bales per year, while domestic production stands at just 29.4 million bales. The high import duty on cotton in India further restricts mills from importing cotton to compensate for the shortfall.
To address these issues, Ganatra highlighted the importance of improving seed technology, investing in irrigation infrastructure, and providing subsidies to increase cotton production. He warned that failure to remove the import duty or enhance cotton production could have disastrous consequences. The recent unfavourable weather patterns, which have led to reduced yields and prices below the Minimum Support Price (MSP), have also inflicted double losses on farmers.
Efforts to boost the cotton industry’s capacity are underway, with spinning mills expanding their operations annually. However, unless immediate action is taken to address the challenges faced by the industry, India risks further declines in cotton production, creating a significant setback for the domestic textile sector.
