This year so far, sowing is complete in 12.8 million hectares which is one million hectares higher than 2021-22.
Nayan Dave | November 21, 2022
Reduced domestic consumption as well as exports coupled with higher production led by increased sowing area may increase closing cotton stock for 2022-23 season by 2.5 million bales (170 kg per bale) to nearly 5.8 million bales compared to previous season.
“Cotton season in India begins from October 1 and ends on September 30. As on September 30, 2022, closing cotton stock stood at 3.3 million bales. However, looking at consumption and export trends for the current season, domestic cotton consumption is expected to drop 2 million bales and export too is likely to reduce by 0.5 million bales. It means closing stock would go up to 5.8 million bales as on September 30, 2023,” said Atul Ganatra, president of Cotton Association of India (CAI).
According to Ganatra, another reason for increased cotton stock by the end of current season is higher cotton production. CAI has estimated cotton production of 34.4 million bales for 2022-23 which is almost 3.7 million bales higher than previous year. This year so far, sowing is complete in 12.8 million hectares which is one million hectares higher than 2021-22.
The CAI president claims that looking at the current situation of spinning mills, domestic cotton consumption would reduce from 32 million bales to 30 million bales. “At present Indian spinning mills are running at 50 to 60 % capacity.
Considering this trend, cotton consumption of spinning mills across the nation will be nearly 5.5 million bales from October to December this year. It was nearly 8 million bales last year during the corresponding period,” said Ganatra.
Similarly, subdued international demand would decline export from 3.5 million to 3 million, he said adding that domestic cotton price is almost 10% higher than international cotton price which is the main reason for lesser export compared to previous year. Cotton import is likely to reduce during 2022-23 by 0.2 million bales to 1.2 million bales from 1.4 million bales, he said.
For the current crop year cotton supply is expected to remain around 38.7 million bales which was 39.2 million bales during 2021-22. Based on the information provided by the 30 CAI members across the cotton growing regions, the first estimate on cotton production and consumption was decided considering the prevailing weather conditions and other criteria.
As many as 10 cotton growing states have been divided in three zones – Punjab, Haryana and Rajasthan in North Zone – Gujarat, Maharashtra and Madhya Pradesh in Central Zone – Andhra Pradesh, Telangana, Karnataka and Tamil Nadu in South Zone.
With almost over 50% share, the Central Zone is expected to produce 19.6 million bales of cotton as against 17.1 million bales in 2021-22. Cotton production in the South Zone to remain at 9.2 million bales as against 8 million bales and in the case of North Zone production is expected to remain the same at 5 million bales. (Source: www.financialexpress.com)