India's cotton production pegged at 309 lakh bales in current season

20 Mar '24

3 min read

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Insights

India's 2023-24 cotton production is estimated at 309.70 lakh bales, with total availability reaching 359 lakh bales due to higher imports.
Domestic demand is up, with significant growth in MSME consumption.
Ginning mills are operating at full capacity, and despite a decrease in stock duration, the industry maintains robust activity levels.

The Cotton Association of India (CAI) has revised its cotton production estimates upwards to 309.70 lakh bales of 170 kg for the current season, 2023-24. Initially, in October 2023, the production was estimated at 294.1 lakh bales. Last year, CAI estimated production at 318 lakh bales, while the Indian Ministry of Agriculture had a slightly lower estimate of 316 lakh bales.

Following a meeting of the national crop Committee on Monday, CAI released a statement indicating that the total availability of this natural fibre is projected at 359 lakh bales. This figure includes the balance stock from last season and imports, which is higher than the 355.40 lakh bales available in the 2022-23 season. The opening stock for the current season was 28.90 lakh bales, compared to 24 lakh bales in the previous season. Notably, cotton imports this season have increased to 20.40 lakh bales, up from 12.50 lakh bales last year.

An analysis of CAI's data shows that total domestic demand has risen to 317 lakh bales, up from 311 lakh bales last year. Non-MSME consumption has decreased to 201 lakh bales from 280 lakh bales last year, while MSME consumption has jumped from 15 lakh bales to 100 lakh bales. Non-textile consumption has remained steady at 16 lakh bales.

According to CAI, the surplus cotton is estimated at 42 lakh bales this season, slightly down from 44 lakh bales last year. Cotton exports could increase to 22 lakh bales, up from 15.50 lakh bales last year. However, the closing stock may decrease to 20 lakh bales from 28.90 lakh bales last year.

From October 1, 2023, to February 29, 2024, cotton arrivals are estimated at 226.82 lakh bales. In February 2024 alone, 49.67 lakh bales of cotton arrived in the market, with a daily average arrival of 1.71 lakh bales.

The Cotton Corporation of India (CCI) has procured approximately 33 lakh bales up to 29 February this year. Ginning mills in central and north India are operating at full capacity, while those in south India are at 75-80 per cent capacity. Indian spinning mills are running at 90 per cent production capacity. By the end of February 2024, Indian mills had a cotton stock of 42 lakh bales, sufficient for about 45 days of consumption. Due to lower arrivals, mills are expected to have stocks for only 30.35 days in March 2024. CCI, traders, multinational corporations, and ginners have a total stock of 65.23 lakh bales as of February 2024.

Fibre2Fashion News Desk (KUL)

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