Since bad weather reduced crop yields, cotton stocks in India might decline by almost 16% from a year earlier in 2022/23 to their lowest level in almost two decades, a major trade association said on Thursday.
Reduced stocks will restrict shipments from the largest producer in the world starting on October 1 of the following marketing year and support worldwide prices. Also, it might increase domestic costs and hurt the profit margins of nearby textile businesses.
According to the Cotton Association of India (CAI), cotton stockpiles at the end of the 2022–23 marketing year may reach 2.69 million bales, their lowest level since 2003–04.According to the latest forecast, India is expected to produce 31.3 million cotton bales in the current season that ends on September 30. said CAI.
Due to the decrease in output, India is projected to send less cotton abroad, allowing rivals like the United States, Brazil, and Australia to increase their supplies to important Asian markets like China and Pakistan. According to the CAI, India’s cotton exports this season may drop to 3 million bales from 4.3 million bales last year.