Cotton prices expected to strengthen further due to reduced production and normal consumption
29-Oct-2024 01:10 PM
Ahmedabad. However, due to the strong arrival of new cotton goods, the market is expected to remain soft or stable till November-December 2024, but after that, when the supply pressure decreases, there may be a trend of rise and strength in prices.
The main reason for this is believed to be the decline in cotton production and normal demand and consumption.
The Cotton Association of India has estimated the domestic production of cotton to decline by 7 percent from 325.29 lakh bales in the 2023-24 season to 302.25 lakh bales in the 2024-25 season, while its consumption is expected to be 313 lakh bales, which is almost equal to the previous season.
It is worth mentioning that each bale of cotton weighs 170 kg. According to the association, due to low supply and availability, cotton exports are likely to fall by 37 percent from 28.50 lakh bales in the 2023-24 season to 18 lakh bales in the 2024-25 season, while its imports are expected to jump 43 percent from 17.50 lakh bales to 25 lakh bales.
During the current year, compared to last year, cotton production is likely to decrease by 23.04 lakh bales including 11.05 lakh bales in the central part of the country, 9.62 lakh bales in the northern region and 1.85 lakh bales in the southern states.
In fact, at the national level, this time during the Kharif season, the total sowing area of cotton got stuck at 112.90 lakh hectares with a sharp decline of about 14 lakh hectares as compared to last year, while in some areas the crop was also damaged due to floods and rains.
However, the condition of the remaining crop is quite good and its average yield rate is expected to be better, so there will not be much decline in production.
There was a decline in the area under cotton cultivation in the three top producing states - Gujarat, Maharashtra and Telangana as well as in Rajasthan, Haryana, Punjab, Andhra Pradesh and Madhya Pradesh.
Only in Karnataka and Orissa, the area under cotton cultivation remained almost the same or slightly higher than last year.