In Kharif 2024, India's Cotton Acreage Reduces as Farmers Switch to Pulses and Maize
Farmers' planting decisions are being influenced by bearish global futures and increasing pest attacks. As a result, cotton acreages across the country for the Kharif 2024 cropping season are expected to decline. Farmers in key producing states like Gujarat and Maharashtra are opting for more lucrative crops such as pulses and maize amidst weakening global cotton prices.
The Cotton Association of India (CAI), the apex trade body for the sector, projects a decrease in cotton acreage for the Kharif 2024 season compared to the previous year's 124.69 lakh hectares.
In North India, where Kharif planting is nearly complete, cotton acreages have dropped by nearly half. Farmers in states like Punjab and Haryana faced significant crop losses due to rising pest attacks, mainly the pink bollworm, and increasing production costs.
According to information from North India members in the recent CAI meeting, cotton sowing in the current Kharif season is reduced by 40 to 60 percent in states such as Rajasthan, Haryana, and Punjab,” said Atul Ganatra, President of CAI.
In Gujarat, the largest cotton-producing state, acreages are expected to decline by 12-15 percent this year. Ganatra noted that with parts of Gujarat receiving rains, farmers have already shifted to groundnuts and other crops.
In Maharashtra, which has the largest cotton area in the country, the situation mirrors that of Gujarat. “The Maharashtra state association and other trade members expect a 10-15 percent reduction in area,” Ganatra said. Farmers in Maharashtra are shifting from cotton to tur, maize, and soybeans.
Feedback from seed distributors indicates slow sales of cotton seeds in the state. “Due to water shortages, not much early cotton sowing is done in Central and South India,” Ganatra added. In Madhya Pradesh, acreages are seen lower by a tenth, while in the South, farmers are waiting for the minimum support price (MSP) to be declared.
The bearish trend in ICE Futures is also influencing cotton sowing in India. The ICE cotton futures for December 2024 are trending lower at 70 cents per pound, equivalent to ₹47,000 per candy in Indian rupees. Currently, cotton prices in India are hovering in the ₹55,000-57,000 range for 29 mm.
“Lower December ICE futures are not good for the upcoming cotton sowing. The lower futures are affecting cotton sowing as Indian farmers are keenly watching the ICE futures daily before making sowing decisions,” Ganatra added.
Cotton was planted on 124.69 lakh hectares during the 2023-24 season, with Maharashtra topping the acreage at 42.34 lakh hectares, followed by Gujarat at 26.83 lakh hectares and Telangana
at 18.18 lakh hectares.
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