Cotton exports expected to shrink to 18 lakh bales

19-Dec-2024 12:35 PM

The Cotton Association of India (CAI) has revised its export forecast for the 2024-25 marketing season, predicting a sharp decline in cotton exports by 36.53%, from 28.36 lakh bales in the 2023-24 season to 18 lakh bales in the current season.

This decline is primarily attributed to reduced cotton production, which has been impacted by several factors including a significant decrease in the area sown with cotton, natural disasters, and pest-related damage in certain regions.

The sowing area in key cotton-growing regions has dropped by 35% in northern states like Punjab, Haryana, and Rajasthan, and by 15% in Gujarat.

This reduction in acreage is expected to result in a notable decrease in production. The association notes that cotton pressing in the 2023-24 season also fell to 302.25 lakh bales, compared to 327.45 lakh bales in the previous year.

As of the end of November 2024, domestic markets had received 108.41 lakh bales of cotton, including imports and previous stock. Of this, 54 lakh bales were used domestically, and 4 lakh bales were exported.

The remaining stock was 50.41 lakh bales. Despite this, cotton arrivals are still occurring regularly, though the availability of cotton for export is limited due to the overall production shortfall.