For the cotton year 22-23, India could see a record low cotton stock, nearly 16% fall from the earlier year which is lowest in two decade, last was on the year 2003/04.
Lower stockpiles will limit exports from the World’s largest cotton producer in next marketing year starting from 1st October, 2023. It may also lift the domestic price and put weigh on the margin of local mills.
2.69 million bales could fall on next marketing year, said Cotton Association of India (CAI). India is likely to produce 31.3 million bales of cotton in current season, ending Sep 30th, 2023, down 2.6% from the earlier estimation.
Due to this situation, rival exporters like USA, Brazil, Australia may see increase in cotton export volume to the buyers like Bangladesh, China and Pakistan.