Commodity Market: India will probably have to import 2.2 million cotton bales, a three-year high, as a result of this decreased production.
According to the International Cotton Advisory Committee (ICAC), a 3 percent rise in global production has caused cotton prices to drop to a 12-month low, reaching 25.41 million tonnes. To 23.35 million tonnes, the global consumption has dropped by 0.43 percent. According to ICAC data, there are currently 14.5 million tonnes of inventory in warehouses worldwide. Commodity Market
While the United States, Australia, and Greece are predicted to have lower crop outputs, it is expected that Brazil, Argentina, and Tanzania will likely produce significant crop yields.
Impact of India
India is expected to produce 29.5 million bales of cotton during the 2023–24 season (October to September), which is expected to be the lowest level in over 15 years. One bale is equivalent to 170 kilograms. This decline is explained by El Nino-induced dry spells in August and September that have decreased the amount of land used for cotton production.
According to Ganatra, informists will likely learn that India will have to import 2.2 million cotton bales, a three-year high, due to lower production. The main reason for the loss in production is that cotton sowing reduced by 5 percent compared to last year, Ganatra stated. The agriculture ministry reports that the area planted to cotton decreased from 13.1 million hectares in 2022–2023 to 12.4 million hectares in July–June of 2023. In addition to reduced acreage, the pink bollworm’s attacks throughout North India caused a sharp decline in cotton crop yield. Regional associations initially estimated that the north zone, which includes Punjab, Haryana, and Rajasthan, produced 6.3 million bales of cotton.
The north zone had excellent crop conditions in July, and the regional associations anticipated producing 6.3 million bales. However, they are now only expecting 3.8–4.3 million bales due to this pink bollworm attack, Ganatra stated on October 29 at a conference in Hyderabad.
Overall, India’s yearly production of cotton has decreased by 6% YoY, with prices plunging by 6% for the week and 12% for the month
