Cotton exports to double at 28.50 lakh bales in 2023-24 season

The Cotton Association of India (CAI) has announced that cotton exports are expected to nearly double in the 2023-24 season, reaching 28.50 lakh bales, compared to 15.50 lakh bales in the previous season. This significant increase is attributed to the competitive pricing of Indian cotton in the global market.

Atul S. Ganatra, president of CAI, highlighted that during February and March, Indian cotton prices were notably lower than those of international competitors, prompting a surge in exports. Notably, around 20 lakh bales were shipped to neighboring Bangladesh during this period, underscoring the strong demand for Indian cotton.

For the current season, which began on October 1, the average price of cotton is estimated at Rs 57,500 per candy, a decrease from Rs 62,500 per candy in the previous year. This price drop has enhanced the appeal of Indian cotton among international buyers, facilitating increased export activity.

The CAI’s crop committee has projected total cotton production for the 2023-24 season at 325.29 lakh bales, a slight increase from 318.90 lakh bales produced in the previous season. This growth in production, combined with favorable pricing, positions India as a competitive player in the global cotton market.

However, there are some adjustments in the domestic market outlook. Cotton imports are now anticipated to rise by 1.10 lakh bales compared to earlier projections. Concurrently, the CAI has revised its domestic consumption estimate down by 4 lakh bales, bringing it to 313 lakh bales. This suggests a shift in market dynamics that could impact local cotton prices and availability.

The forecast for the 2023-24 cotton season indicates a robust export market fueled by lower prices and increased production. As Indian cotton continues to gain traction globally, stakeholders will be closely monitoring market trends and adjustments in domestic consumption and import levels.