Indian Economy News

Cotton exports estimated to rise 27% to 2.8 million bales in 2023-24 season: CAI

The Cotton Association of India (CAI) projected a 27% increase in cotton exports to reach approximately 28 lakh bales by the end of the 2023-24 crop year in September. This surge follows the previous year's exports of 22 lakh bales. The competitive pricing of Indian cotton, averaging 8-10% lower than international rates from December 2023 to March 2024, drove demand primarily from countries like Bangladesh, China, and Vietnam. Despite maintaining a steady estimate of 309.70 lakh bales for cotton production in 2023-24, CAI anticipates a slight decline from the previous season's 318.90 lakh bales. As of April 2024, the total cotton supply is forecasted at 315.86 lakh bales, comprising pressing at 281.96 lakh bales, imports of 5 lakh bales, and an opening stock of 28.90 lakh bales.

Cotton consumption until April 2024 is projected at 192.50 lakh bales, with exports expected to reach 21.50 lakh bales. The estimated closing stock by April stands at 101.86 lakh bales, with textile mills holding 40.50 lakh bales, equivalent to over 45 days of consumption, and the remaining 61.36 lakh bales held by various entities including the Cotton Corporation of India, and others. For the entire 2023-24 season, CAI maintains a total cotton supply estimate of 359 lakh bales, which includes an opening stock of 28.90 lakh bales, estimated cotton pressing of 309.70 lakh bales, and imports of 20.40 lakh bales. Notably, cotton imports are anticipated to rise by 7.90 lakh bales compared to the previous year. Overall, CAI's projections reflect a robust outlook for India's cotton sector, driven by competitive pricing, steady production estimates, and an uptick in export demand, despite anticipated challenges in production and supply.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.