Marking an 80 per cent increase from last year’s 15.5 lakh bales, India's cotton exports are estimated to rise to 28 lakh bales during the 2023-24 crop year with majority of the demand coming from countries like Bangladesh and Vietnam.
As per estimates by USDA, India’s domestic cotton consumption is forecasted to rise to 317 lakh bales for the year, with 291 lakh bales already consumed by the end of August. Cotton imports too are estimated to have risen to 16.4 lakh bales compared to 12.5 lakh bales last year. On the other hand, cotton production, mill use, and exports in the US for the 2024/25 season is expected to decrease due to damage caused by Hurricane Helene. Globally, cotton production is projected to rise, with increases in China, Brazil, and Argentina balancing reductions in the U.S. and Spain.
Driven by the USDA’s revised cotton production forecast for India’s 2024-25, cotton Candy prices increased by 0.09 per cent, closing at Rs 57,000, USDA had earlier lowered India’s cotton production forecast for the 2024-25 season to 30.72 million bales due to crop damage from excessive rains and pest infestations. This also led to a reduction in projected ending stocks, now expected to decline to 12.38 million bales. While the acreage under cotton cultivation has decreased by about 9 per cent, the reduction is expected to be offset by higher yields, thanks to timely rains. However, price gains remain limited by moderate demand and sluggish export activity, especially from key markets like Bangladesh.
