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India's cotton exports for the 2023-24 season have surged by 80%, reaching 28 lakh bales, driven by strong demand from Bangladesh and Vietnam, according to the Cotton Association of India (CAI). Imports have also increased to 16.40 lakh bales, while domestic consumption is projected at 317 lakh bales, reflecting steady local demand. Cotton acreage has declined to 112.13 lakh hectares, mainly in Gujarat, Maharashtra, and Telangana, though Karnataka and Odisha saw slight increases. With supplies at 362.18 lakh bales and revised pressing figures of 323.03 lakh bales, the market remains well-supported. CAI expects closing stocks to drop to 23.32 lakh bales, down from 28.90 lakh bales last year.

Key Highlights

* Cotton exports rise by 80% to 28 lakh bales in 2023-24.

* Strong demand from Bangladesh and Vietnam drives export surge.

* Cotton acreage declines in key states like Gujarat and Maharashtra.

* Imports rise to 16.40 lakh bales, while domestic consumption reaches 317 lakh bales.

* Closing stocks expected to fall by nearly 6 lakh bales this year.

India’s cotton exports for the 2023-24 season, ending in September, have soared by 80% to 28 lakh bales (170 kg each), compared to 15.50 lakh bales in the previous year. The increase is largely attributed to higher demand from major consuming nations like Bangladesh and Vietnam. As of August end, exports stood at 27 lakh bales, according to the Cotton Association of India (CAI).

Despite the robust export figures, the domestic cotton market has experienced some fluctuations. Imports have risen to 16.40 lakh bales, compared to 12.50 lakh bales in the previous year. In terms of consumption, India is expected to utilize around 317 lakh bales of cotton during the current crop year, reflecting strong domestic demand as well. Prices have been supported by both global demand and stable domestic consumption.

Cotton acreage has seen a decline this year, particularly in key producing states such as Gujarat, Maharashtra, and Telangana. As per Agriculture Ministry data, cotton has been planted on about 112.13 lakh hectares, down from 123.39 lakh hectares a year ago. However, some states like Karnataka and Odisha have witnessed a marginal increase in cotton acreage.

With pressing figures revised upwards to 323.03 lakh bales and supplies standing at 362.18 lakh bales till August-end, the cotton market remains well-supported. CAI estimates closing stocks by the end of the season to be 23.32 lakh bales, down from 28.90 lakh bales a year earlier.

Finally

Higher exports, steady consumption, and reduced acreage are expected to keep India’s cotton market well-balanced, with closing stocks lower than last year.

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