Cotton imports expected to increase due to possibility of decrease in domestic production

05-Oct-2024 05:05 PM

Ahmedabad. There has been a significant decline in the cotton sowing area during the current year as compared to last year and the crop has also been damaged due to floods and rains in many areas. As a result, cotton production is likely to decrease significantly.

The previous outstanding stock of cotton is also less, due to which the gap between its demand and supply may increase and to meet it, there may be a need to increase the import of cotton from abroad in the current marketing season (October-September) of 2024-25. According to the industry and trade sector,

taking advantage of the weak prices prevailing in the international market, Indian importers have also contracted cotton imports for November-March delivery.

The President of a leading trade organization - Cotton Association of India has estimated the total import of cotton to jump to 35 lakh bales during the 2024-25 season. In comparison, in the marketing season of 2023-24, a total of 16.40 lakh bales of cotton were imported in the country till August 2024.

According to the president of the association, there was a decline of 12-13 lakh hectares in the sowing area of ​​cotton.

Apart from this, the previous stock of cotton with the farmers is negligible, whereas last year a stock of about 30 lakh bales was available.

The US Department of Agriculture (USDA) has estimated that cotton production in India will decline to 240 lakh bales (each bale of 480 pounds) in the current season of 2024-25,

which is 18 lakh bales or 7 percent less than the production of 258 lakh bales in the 2023-24 season. There is a demand to withdraw the import duty imposed on cotton.