As per the first estimates of the Cotton Association of India (CAI), the production is likely to be at 29.5 million bales for the cropping year 2023-2024. This is about 7-8 percent lower compared to last year, which stood at 31.9 million bales.
Cotton Association of India President Atul Ganatra told CNBC-TV18, “After 2008-2009, this is the lowest Indian cotton crop estimates.” He added this decline in production is largely on account of El Nino, reduction in cotton sowing area by five percent, and drop in cotton yields. The association has observed that yield will decline by 5-20 percent due to the unfavourable weather. Rajasthan is expected to take a huge hit when it comes to yields, a decline of over 40 percent.
However, Punjab will see an improvement of 50 percent in yields. Further, Gujarat will witness a drop of one million bales in production, the association estimates, followed by Maharashtra (which will be down by eight million bales). Further, in terms of percentage in sowing area, Tamil Nadu has seen the largest decline in sowing area for cotton by 80 percent, followed by Andhra Pradesh and Karnataka.
The growing decline in demand has further led to this change. Despite declining sowing area, the crop production remains unchanged for Tamil Nadu and Telangana. States like Gujarat, Haryana, Madhya Pradesh are expected to witness a marginal rise in their sowing area. The association also highlighted the demand continues to outpace the supply in the country. Over the last few years, the cotton industry, especially the ginners in the country, were bleeding due to lower global cotton prices and higher domestic prices.
First Published: Oct 31, 2023 10:38 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
BJP is planning to ban RSS, says Shiv Sena (UBT) chief Uddhav Thackeray
May 18, 2024 8:01 PM
Punjab Lok Sabha elections: Complete list of Congress candidates
May 18, 2024 4:08 PM
Punjab Lok Sabha elections: Check full list of AAP candidates and constituencies
May 18, 2024 12:59 PM
PM Modi, Rahul Gandhi election rallies in Delhi today: Here are the routes to avoid
May 18, 2024 11:28 AM