Over the past three months, Indian cotton prices have remained competitive, enticing global buyers from countries like Bangladesh, China, and Vietnam to increase their imports of the fibre crop. The beginning of the 2023-24 season in October saw exports reaching 15 lakh bales, a figure on par with the entire marketing season of 2022-23, which totalled 15.5 lakh bales. The Cotton Association of India (CAI) has raised its export projections for the current season to 22 lakh bales, with expectations of hitting 25 lakh bales.
Indian cotton’s appeal to overseas buyers is evident in the price difference of ₹4,000-5,000 per candy compared to international rates from December to February. The competitive pricing led to the shipment of around 10 lakh bales in January and February alone, with another 2.5-3 lakh bales expected to be exported in the following month.
Despite a 5% upward revision in production estimates for the ongoing season to 309.70 lakh bales, the figure still falls short of the previous year’s output of 318.9 lakh bales. The boost in crop estimates primarily stems from states like Rajasthan, Gujarat, Maharashtra, Telangana, and Karnataka, with notable increases in specific regions. The adjusted estimates reflect a detailed analysis of pressing data received from key stakeholders.
Moreover, the emergence of held-up stocks from the previous season further influenced the market dynamics. As cotton consumption by domestic mills surged, the estimated total consumption for the 2023-24 season was revised upwards to 317 lakh bales. With closing stocks projected at 20 lakh bales by September 2024, industry experts foresee a highly tight balance sheet in the near future.
In conclusion, the rise in Indian cotton exports, driven by competitive prices and enhanced production estimates, underscores the country’s pivotal role in the global cotton market and sets the stage for a dynamic season ahead.
