Cotton farmers in India are reportedly holding back their cotton due to fluctuating prices, leading to lower daily market arrivals compared to the previous cotton season. Cotton prices dropped to INR 56,000 ($770) per candy last week, but recovered to INR 60,000 ($826) per candy on Monday. According to Atul Ganatra, the president of the Cotton Association of India, arrivals between October 1 and December 31, 2022 were about 82 lakh bales, compared to 130 lakh bales for the same period the previous season.
Nishant Asher, the secretary of the Indian Cotton Federation (ICF), explained that cotton prices reached a peak of INR 1.10 lakh ($1,523) per candy last season, but have significantly dropped during the current season. Asher added that Indian cotton prices are now more in line with global prices, but farmers are holding back their cotton in anticipation of higher prices. In Telangana, farmers have announced state-wide protests to demand higher cotton prices.
J. Thulasidharan, the president of ICF, suggested that the government should focus on improving cotton productivity to bring stability to the cotton sector. He also noted that textile mills have started buying cotton as demand for yarn improves, leading to a slight improvement in cotton prices.
