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Friday, May 24, 2024

Cotton prices likely to increase by mid-2023 in India

India is likely to lose its status of net cotton exporter soon as its cotton production is declining while consumption is on the rise. According to Atul Gantra an official of the Cotton Association of India, the cotton production in the country was 42 million bales in 2022 while the estimates for 2023 are 23.05 million bales. With such a steep decline it would not be possible to export the commodity.

He said last year the exports of cotton declined to a six-year low and in the coming year could drop to 19 years low. He said there were lower orders from China, Bangladesh, and Turkey which are the main buyers of Indian cotton.

He said it is surprising that the global cotton prices are at four years low but the prices in India are higher because there is good demand for the commodity. The cotton arrivals this year have been low as the farmers have held back the harvested crop in hope of getting better prices, Atul predicted that by mid-2023 the cotton prices may jump to INR 75,000 per candy.

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