CAI forecasts 27% increase in India’s cotton exports for 2023-24

CAI forecasts a 27% rise in India’s cotton exports to 28 lakh bales in 2023-24. Demand surged due to lower prices compared to international rates. Production is estimated at 309.70 lakh bales, lower than the previous year.

Source: TPCI

The Cotton Association of India (CAI) estimated a 27% increase in cotton exports, reaching 28 lakh bales during the 2023-24 crop year ending in September. In the 2022-23 crop season, cotton exports were at 22 lakh bales. One bale is equal to 170 kilograms.

CAI President Atul Ganatra stated that the demand for Indian cotton rose as prices were 8-10% lower than international prices from December 2023 to March 2024. India mainly exports cotton to Bangladesh, China, and Vietnam.

CAI pegged cotton production for 2023-24 at 309.70 lakh bales, the same as estimated in the previous month, but lower than the previous season’s 318.90 lakh bales. The total cotton supply till the end of April 2024 is estimated at 315.86 lakh bales, including 281.96 lakh bales of pressing, 5 lakh bales of imports, and an opening stock of 28.90 lakh bales.

Estimated cotton consumption till April 2024 is 192.50 lakh bales, while exports are pegged at 21.50 lakh bales. The stock at the end of April is estimated at 101.86 lakh bales, with 40.50 lakh bales held by textile mills and the remaining 61.36 lakh bales with the Cotton Corporation of India, Maharashtra Federation, and others including MNCs, MCX, traders, and ginners.

The CAI retained its total cotton supply estimate at 359 lakh bales for the 2023-24 season, which includes the opening stock of 28.90 lakh bales, estimated cotton pressing of 309.70 lakh bales, and imports of 20.40 lakh bales, a 7.90 lakh bales increase from the previous year.