India faces 7.23% drop in cotton production, lowest in 15 years

India's cotton production is expected to decrease by 7.23 per cent to 295 lakh bales, each weighing 170 kg, during the 2023-24 crop marketing year (October-September). This projection, a 15-year low, has been released by the Cotton Association of India (CAI), attributing the decline to the El-Nino effect on weather, which has adversely affected crop prospects. Despite this decrease in production, a surplus supply is anticipated due to reduced consumption in the industry. 

The Indian government initially projected cotton production at 316 lakh bales for the current year 2023-24, following an estimate of 336 lakh bales last year. According to the CAI, the expected drop to 295 lakh bales marks the lowest level since 2008-09. Yields across cotton-growing states are anticipated to fall by 5 to 20 per cent due to unfavourable weather. Additionally, a severe pink bollworm infestation in northern India has led to a significant reduction in crop size estimates, from 62 lakh to 40 lakh bales. 

CAI has also reported that India will import 22 lakh bales of cotton, with opening stocks at 28.9 lakh bales. The total cotton availability for the 2023-24 season is estimated at 346 lakh bales, compared to a domestic demand of 311 lakh bales. This demand includes 280 lakh bales for mills, 15 lakh for small-scale industries, and 16 lakh for non-mills. 

For the 2023-24 season, CAI predicts a surplus of 35 lakh bales and exports of 14 lakh bales, expecting the closing stock to be 21 lakh bales. 

ALCHEMPro News Desk (KUL)