Cotton prices Surge as Acreage Declines in Punjab, Haryana, and Rajasthan
By MAHENDRA YOGI 2024-08-14 11:49:44
Prices for cotton rise in Punjab, Haryana, and Rajasthan as acreage declines.
Cotton prices have increased by 1.07%, reaching ₹56,900 per candy, driven by significant reductions in cotton acreage across major Indian states. Punjab, Haryana, and Rajasthan have seen their cotton cultivation fall to 10.23 lakh hectares from 16 lakh hectares last year. Specifically, Punjab's cotton area has plummeted to 97,000 hectares, a sharp decline from 7.58 lakh hectares in the 1980s and 1990s. Rajasthan and Haryana also reported reductions, with their cotton acreage now at 4.75 lakh hectares and 4.50 lakh hectares, respectively.
The decrease in acreage is coupled with delays in shipments from major global cotton producers like the US and Brazil, heightening demand for Indian cotton, particularly from mills in neighboring countries.
The rise in cotton prices is further supported by firm cottonseed prices. Sowing for the Kharif 2024 season has commenced in southern states such as Karnataka, Telangana, and Andhra Pradesh, following recent monsoon rains. According to the USDA’s 2024/25 cotton projections, higher beginning and ending stocks are anticipated compared to previous estimates.
Despite stable domestic production, consumption, and export forecasts, the season average upland farm price has been revised down by 4 cents to 70 cents per pound due to lower new-crop cotton futures. In the US, ending stocks are expected to rise by 400,000 bales to 4.1 million bales. Globally, the 2024/25 cotton balance sheet indicates increases in beginning stocks, production, and consumption, with world-ending stocks projected to reach 83.5 million bales, up by 480,000 bales from May.
