CAI revises cotton production forecast for 2024-25 to 301.15 lakh bales

The Cotton Association of India (CAI) has revised its cotton production forecast for the current 2024-25 season spanning October-September downwards to 301.15 lakh bales from 327.45 lakh bales last year. The association expects cotton production in North India to decline sharply to 28.80 lakh bales this season from 45.62 lakh bales in the previous season.

Production in Central India is also expected to decline to 180 lakh bales from 202.21 lakh bales last year. Conversely, South India's cotton production is anticipated to increase from 73.85 lakh bales to 86.50 lakh bales.

Cotton consumption may decrease to 305 lakh bales from 313 lakh bales used in the previous year. Meanwhile, cotton exports are predicted to decline to 17 lakh bales from 28.36 lakh bales last season, while imports are expected to more than double, increasing to 39 lakh bales from 15.20 lakh bales.

The CAI has voiced concerns about the continuous increase in cotton's Minimum Support Prices (MSP). They argue that higher MSPs distort market dynamics, impede natural price discovery, and raise production costs for textile mills. This could lead to higher consumer prices and undermine the global competitiveness of Indian cotton.