The Cotton Association of India (CAI) has recently released its cotton balance sheet for the 2023-24 crop year, providing insights into the domestic cotton market’s performance.
Closing Stock and Consumption:
The association estimates that the closing stock of cotton for the 2023-24 season, ending September 2024, will be approximately 30.19 lakh bales (of 170 kg each), marginally higher than the previous year’s 28.90 lakh bales.
Domestic consumption during the 2023-24 period is projected to reach 313 lakh bales, a slight increase from the 311 lakh bales consumed in the preceding year.
Increased Imports and Pressing:
A notable trend in the 2023-24 season was the rise in cotton imports. The country imported an estimated 17.50 lakh bales, significantly higher than the 12.50 lakh bales imported in the previous year. This increase in imports, coupled with higher domestic production, led to a total supply of 371.69 lakh bales during the year.
The overall cotton pressing for the year is estimated at 325.29 lakh bales, surpassing the previous year’s 318.90 lakh bales. This upward revision from the earlier projection of 323.02 lakh bales underscores the robust demand for cotton.
Export Surge:
India’s cotton exports witnessed a substantial surge during the 2023-24 season, reaching an estimated 28.50 lakh bales. This represents an 84% increase over the previous year’s 15.50 lakh bales, driven by higher demand from countries like Bangladesh and Vietnam.
Reduced Acreage for 2024-25:
Looking ahead to the 2024-25 cropping season, the cotton acreage is projected to decline by 11 lakh hectares to 112.76 lakh hectares, compared to the previous year’s 123.71 lakh hectares. This reduction is attributed to farmers shifting towards other more profitable crops.
