Business

Cotton Prices Fell As India's Cotton Sowing Gained By 7%

Are cotton prices easing as sowing gains? Cotton prices across varieties saw a significant dip. According to analysts, the low demand in global markets, and higher crop size have led to this much awaited correction. India’s cotton output for the season 2022-23 is likely to touch 375 lakh bales (each of 170 kg), given no climatic adversities affect the crop during October, sources said. The cotton area is estimated at 126 lakh hectares till September 2 — up 8-9% from 117 lakh hectares last year. Atul Ganatra, President, Cotton Association of India (CAI), stated that the cotton crop condition in India was "very good and if everything goes well, we are expecting 350 lakh bales +/– 25 lakh bales." The crop size may touch 375 lakh bales if there are no rains during October. It may hamper the quality if it rains during October when the cotton bolls are open in the irrigated fields. In its monthly supply-demand report, the United States Department of Agriculture (USDA) cut its global production forecast by 3.1 million bales, and the US output outlook by 3 million bales for the 2022-23 crop year. Hot and dry weather conditions in key growing areas in the United States have threatened the shape of the natural fibre crop and raised supply concerns. In recent times, heavy rainfalls and pest attacks are affecting the cotton crop. In the northern states of Punjab, Haryana, and Rajasthan cotton crop has been affected due to pink bollworm infestation.