Cotton output likely to be down 8% in 2023-24, says CAI

Mumbai: Cotton production may decline by around 8 per cent to 294.10 lakh bales in the 2023-24 season due to lower yields in most growing regions, according to the Cotton Association of India (CAI) estimates released on Thursday.

The total cotton production during the 2022-23 season (October-September) stood at 318.90 lakh bales of 170 kg each, according to CAI data.

"The production this year is expected to lower by 24.8 lakh bales at 294.10 lakh bales following infestation of pink ball worms in the northern region, while the yield in the southern and the central regions will be affected due to no rainfall for 45 days from August, 1 till September 15," CAI president Atul Ganatra said.

The total supply till the end of November 2023 is estimated at 92.05 lakh bales which consists of the arrivals of 60.15 lakh bales, imports of 3 lakh bales and the opening stock of 28.90 lakh bales at the beginning of the season.

Further, the CAI has estimated cotton consumption up to the end of November 2023 at 53 lakh bales while the export shipments up to November 30, are estimated at 3 lakh bales.

Stock at the end of November is estimated at 36.05 lakh bales, including 27 lakh bales with textile mills and the remaining 9.05 lakh bales with CCI, Maharashtra Federation and others (MNCs, traders, ginners, among others) including cotton sold but not delivered.

The CAI has retained its total cotton supply till the end of the cotton season 2023-24 (up to September 30, 2024) at 345 lakh bales.

The total cotton supply consists of the opening stock of 28.90 lakh bales at the beginning of 2023-24 season, cotton pressing numbers estimated for the season at 294.10 lakh bales and imports for the season estimated at 22 lakh bales.

The cotton imports estimated by the CAI for the season are higher by 9.50 lakh bales compared to last year.

"This year the imports are expected to be higher due to lower production estimates," Ganatra added.

The exports for the season 2023-24 are estimated at the same level as last year at 14 lakh bales as against 15.50