Cotton prices improve due to possibility of reduced production

14-Oct-2024 06:26 PM

Mumbai. Domestic production of cotton is likely to decline during the current marketing season of 2024-25 due to reduction in sowing area and damage to the crop due to natural calamities like floods and rains.

The US Department of Agriculture (USDA) has reduced the estimate of cotton production in India to 307.20 lakh bales and the final outstanding stock has been estimated at 123.80 lakh bales.

The cotton crop was damaged due to excessive rain and waterlogging in many areas and the outbreak of insects and diseases.

At the national level, the sowing area of ​​cotton also declined by 8 percent compared to last year to 110.49 lakh hectares this time as farmers increased the area of ​​other crops whose market price was high.

Despite this, limited increase has been recorded in the price of cotton so far. On the previous day, its price rose by 0.25 percent to Rs 56,950 per candy (356 kg).

At present, the demand for cotton remains weak and export activity is less than normal. However, some analysts believe that the overall cotton production during the current season may remain almost equal to the previous season because the condition of the remaining crop is very good and its average yield rate is expected to increase.

Apart from this, this time the attack of insects and diseases on the crop is also being seen less, due to which the productivity and quality will be better.

But in states like Maharashtra and Gujarat, the harvesting and preparation of cotton crop was delayed by about a month.

During the entire marketing season of 2023-24 (October-September), about 28 lakh bales of cotton are expected to be exported from the country, which is much higher than the total shipment of 15.50 lakh bales of 2022-23 season. There may be some improvement in prices going forward.