Cotton production in India is expected to decline by approximately 8% in the 2023-24 season, according to estimates released by the Cotton Association of India (CAI) on Thursday. The CAI predicts that cotton production will reach 294.10 lakh bales, a drop of 24.8 lakh bales from the previous season. This decrease is primarily attributed to lower yields in most growing regions.
The northern region of the country has witnessed an infestation of pink ball worms, leading to a decrease in production. Meanwhile, the southern and central regions have experienced a dearth of rainfall for 45 consecutive days from August to September, resulting in reduced yields. CAI President Atul Ganatra highlighted these factors as major contributors to the decline in cotton production.
The total cotton supply till the end of November 2023 is estimated at 92.05 lakh bales, with a further 53 lakh bales projected to be consumed by the same period. The CAI also estimates export shipments up to November 30 to be around 3 lakh bales. At the end of November, the estimated stock is predicted to be 36.05 lakh bales.
For the entire 2023-24 cotton season, the CAI projects a total cotton supply of 345 lakh bales. This includes an opening stock of 28.90 lakh bales, estimated pressing numbers of 294.10 lakh bales, and anticipated imports of 22 lakh bales. The CAI anticipates higher cotton imports this year, totalling 9.50 lakh bales more compared to the previous year. As for exports, the CAI projects it to remain at 14 lakh bales, similar to the previous year.
The decline in cotton production could have significant implications for the textile industry in India, as it may impact the availability of raw materials. Additionally, it could potentially lead to higher prices for cotton products in the domestic market.
