India’s Cotton Output Likely to Drop 7.4% Due to Excessive Rainfall
2024-10-22 17:41:44
Due to excessive rainfall, India's cotton output is expected to decline by 7.4%.
India's cotton production for the 2024/25 season is projected to decline by 7.4% to 30.2 million bales, compared to the previous year, primarily due to reduced cultivation area and crop damage caused by excessive rainfall, according to a leading trade body on Tuesday.
The drop in production is expected to impact exports from the world's second-largest cotton producer during the marketing year that began on October 1, while increasing the country's need for imports, which may support global cotton prices.
India's cotton imports are forecasted to rise to 2.5 million bales in the new season, up from 1.75 million bales a year earlier, according to a statement from the Cotton Association of India (CAI). Meanwhile, exports are expected to fall sharply to 1.8 million bales, down from 2.85 million bales the previous year.
The decline in production is largely attributed to a significant reduction in the area under cotton cultivation, which decreased to 11.29 million hectares from 12.69 million hectares last year, explained Atul Ganatra, president of CAI.
In Gujarat, India's top cotton-producing state, farmers have shifted away from cotton to grow groundnuts, which have been offering more profitable returns, according to traders.
