For the second consecutive year, global cotton production is expected to surpass consumption in the 2023-24 seasons, as per a projection by the International Cotton Advisory Committee (ICAC). Production during the season is expected to rise to 25.4 million metric tonne, while consumption is forecasted to decline marginally to 23.4 million metric tonne.
A rise in cotton production led to cotton prices declining marginally by 0.18 per cent to Rs 56,060 during the 2022-23 seasons.
Global cotton supply during the season surged as cultivation expanded and productivity increased. However, demand remained sluggish due to unfavorable economic conditions, resulting in elevated inventories and a subsequent reduction in cotton prices worldwide.
The Cotton Association of India (CAI) has maintained its estimate for the 2023-24 seasons at 294.10 lakh bales of 170 kg each. The decline in pink bollworm infestation in the cotton crop has led to CAI reducing damage estimates from 30.62 percent in 2017-18 to 10.80 percent in 2022-23.
