The cotton production in India for 2023/24 is expected to be 31.657 million bales (170 kilograms per pack), a 6% decrease from the previous year’s 33.66 million bales.
According to the forecast, the domestic consumption of India in 2023/24 is expected to be 29.4 million bags, lower than the previous year’s 29.5 million bags, with an export volume of 2.5 million bags and an import volume of 1.2 million bags.
The committee expects a decrease in production in the central cotton producing regions of India (Gujarat, Maharashtra, and Madhya Pradesh) and the southern cotton producing regions (Trengana, Andhra Pradesh, Karnataka, and Tamil Nadu) this year.
The Indian Cotton Association stated that the reason for the reduction in cotton production in India this year is due to pink cotton bollworm infestation and insufficient monsoon rains in many production areas. The Cotton Federation of India stated that the main problem in the Indian cotton industry is demand rather than insufficient supply. At present, the daily market volume of Indian new cotton has reached 70000 to 100000 bales, and the domestic and international cotton prices are basically the same. If the international cotton prices fall, Indian cotton will lose competitiveness and further impact the domestic textile industry.
The International Cotton Advisory Committee (ICAC) predicts that global cotton production in 2023/24 will be 25.42 million tons, a year-on-year increase of 3%, consumption will be 23.35 million tons, a year-on-year decrease of 0.43%, and ending inventory will increase by 10%. The head of the Indian Cotton Federation stated that due to the very low global demand for textiles and clothing, domestic cotton prices in India will remain low. On November 7th, the spot price of S-6 in India was 56500 rupees per cand.
The head of India Cotton Company stated that CCI’s various acquisition stations have started working to ensure that cotton farmers receive the minimum support price. Price changes are subject to a series of factors, including domestic and foreign inventory conditions.
Post time: Nov-15-2023