Lower Cotton Yield May Bring-Down India's Exports By 36.53% In 2024-25
Date
12/19/2024 4:13:01 AM
(MENAFN- KNN India)
Mumbai, Dec 19 (KNN) India's cotton exports are projected to witness a sharp 36.53 per cent decline in the 2024-25 season, beginning October 1, with volumes expected to drop to 18 lakh bales.
This reduction is attributed to lower production caused by shrinking cotton acreage, particularly in the northern regions and Gujarat, according to the Cotton Association of India (CAI).
For the 2023-24 season, total exports stood at 28.36 lakh bales, based on CAI data.
“The decline in cotton exports is mainly due to a reduction in production following decreased acreage this year. Cotton acreage has shrunk by 35 per cent in the northern cotton-growing states of Punjab, Haryana, and Rajasthan, and by 15 per cent in Gujarat. This will likely keep domestic cotton prices steady compared to global markets,” CAI President Atul Ganatra said in a statement to PTI.
The total cotton pressing for the 2023-24 season is estimated at 302.25 lakh bales, down from 327.45 lakh bales in the previous season.
Meanwhile, total cotton supply until the end of November 2024 is projected at 108.41 lakh bales, including pressing figures of 69.22 lakh bales, imports of 9 lakh bales, and an opening stock of 30.19 lakh bales at the beginning of the season.
Domestic consumption is estimated at 54 lakh bales till November-end, while export shipments are pegged at 4 lakh bales of 170 kg each. The stock at the end of November 2024 is anticipated to be 50.41 lakh bales.
The reduced acreage in key cotton-growing regions, coupled with steady domestic prices, is expected to impact India's competitive edge in the global market. The trend signals challenges ahead for exporters while offering stability to domestic stakeholders.
The decline underscores a pressing need for strategic measures to boost cotton productivity and stabilise the industry amid fluctuating global dynamics.
(KNN Bureau)
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