CAI affirms India's cotton output at 294 lakh bales for 2023-24.

In January 2024, the Cotton Association of India (CAI) maintained its projections for India's cotton production and consumption for the 2023-24 season. Cotton output is expected to remain stable at 294.10 lakh bales of 170 kg, with domestic consumption projected at 311 lakh bales, suggesting a potential decline from the previous season's 318.90 lakh bales.

As per CAI India's total cotton supply for 2023-24 would be 345 lakh bales, comprising 28.90 lakh bales of opening stock and 22 lakh bales of imports. This marks an increase in both opening stock and imports compared to the previous season, potentially leading to a reduction in total cotton availability from 355.40 lakh bales in the previous season.

Domestic demand was upheld at 311 lakh bales, consistent with previous estimates, with mill consumption, Small Scale Industries (SSI) consumption, and non-mill consumption remaining at 280 lakh bales, 15 lakh bales, and 16 lakh bales, respectively.

The surplus of available cotton stood at 34 lakh bales, a decrease from the previous season's 44.40 lakh bales. Cotton exports are expected to decline to 14 lakh bales from 15.50 lakh bales, while the projected closing stock for September 2024 is 20 lakh bales, down from 28.90 lakh bales in the previous year.

CAI also maintained its regional projections, with the north region expected to produce 42 lakh bales, the central region 179.60 lakh bales, and the southern region 67.50 lakh bales. Most producing states are anticipated to experience lower production levels.