Government agency Cotton Corporation of India (CCI), which carries out cotton procurement operations when prices fall below the minimum support price (MSP), has pegged India’s 2022-23 cotton production higher by 15% to 360 lakh bales of 170 kilograms each.
At a time when the central government is worried about the closure of 50% of the spinning mills in the country due to cotton shortages, the production in the October-September cotton year 2022-23 is expected to increase by about 15% provided the weather remains conducive till October offering relief to the entire cotton value chain.
Government agency Cotton Corporation of India (CCI), which carries out cotton procurement operations when prices fall below the minimum support price (MSP), has pegged India’s 2022-23 cotton production higher by 15% to 360 lakh bales of 170 kilograms each.
Prices of Indian cotton had increased from Rs 60,000 per candy (of 356 kilograms) in January to Rs 1,10,000 by May. Thanks to such high prices, the area under cotton sowing has increased by 7% to 8%.
“The area under cotton has increased to 128 lakh hectares against 120.55 in the previous year. As yields are also expected to increase due to excellent weather conditions, production of cotton is expected to increase to 360 lakh bales,” said Arjun Dave, deputy general manager, of CCI. He was speaking at the All India Meet on Cotton Trade organized by the Khandesh Gin Press Association, Jalgaon.
The Cotton Association of India (CAI), which is dominated by traders, has pegged the production figure at 350 lakh bales. “If the weather remains conducive in the coming months, the production can increase to 370-375 lakh bales. However, if not, then the production can fall to 325-330 lakh bales,” said Atul Ganatra, president, of CAI. Ganatra said that the textile industry is in depression and there is huge pressure from the government to ease the cotton situation. “Exports of yarn, textile, garments, etc have declined by about 70%,” said Ganatra.
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