Cotton production in India faces decline

India's cotton production is set to dip in the 2024-25 season due to reduced sowing and natural calamities. According to recent reports, India's cotton output is projected to fall from 254 lakh bales in the 2023-24 season to 250 lakh bales in the upcoming season. This decline is attributed to a significant decrease in the sowing area and crop damage caused by adverse weather conditions.

The USDA's latest report corroborates the expectation of lower production. While the USDA estimates India's total cotton availability at around 366 lakh bales, including domestic production, imports, and existing stock, domestic consumption is projected to be 260 lakh bales, with 13 lakh bales earmarked for export. This leaves a surplus stock of 93 lakh bales at the end of the season. However, India's Cotton Association has raised concerns about the USDA's surplus stock estimate, suggesting that the actual figure may be higher.