Cotton prices in India likely to remain low

Although a supply surplus is expected, Indian cotton continued to be more expensive than international cotton during October 2022.

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New Delhi, November 7: Cotton prices in India are likely to be at a lower trajectory in the Q3 of the ongoing financial year. The arrival of fresh stock of cotton in the domestic market may create a supply surplus.

The Cotton Association of India (CAI) estimates that in Q3, cotton production will reach 34 to 35 million bales (170 kg per bale), an increase of 12% from the previous year. In the 3rd quarter of previous FY, India’s cotton production was recorded at 30.7 million bales.

India Rating and Research report claims that with domestic as well as global consumption likely to be lower than the previous season, supply surplus may weigh down on the cotton prices.

CAI president Atul Ganatra says that cotton prices in India are at Rs. 65,000/candy (356 kgs) as against Rs. 51,000/candy or 78.5 cent in the International Cotton Exchange (ICE). The cotton spinning mills in the country are expecting further downfall in the domestic cotton prices.