The area of cotton harvested is expected to decrease as the area cultivated in Rabi in southern India increases. Despite the decline in the cotton harvest and damage from excessive rains, cotton production is expected to increase due to high seed cotton prices. Farmers are also willing to keep the crop in the field longer for better price realization.
In addition, the new Minimum Support Price (MSP) was increased by 3.80 percent and 3.40 percent for medium staple cotton and long staple cotton, respectively.
The highly competitive prices of Indian cotton fibers in the world market, coupled with the growing export demand for cotton yarn and textile products, will lead to an increase in India’s domestic cotton consumption during the year. market (MY) 2021-22. Cotton imports have also increased due to strong demand from cotton mills to meet their export orders.
The harvested cotton area in India was 13.40 million hectares in MY 2019-20, which fell 2.99% to 13 million hectares in MY 2020- 21, according to Fibre2Fashion TexPro’s market analysis tool. It is expected to decline further by 4.62% to 12.40 million hectares during the 2021-22 marketing year.
The country produced 28.80 million 480-pound bales in MY 2019-2020 and 27.90 million 480-pound bales in MY 2020-21. However, it is expected to increase slightly by 0.36% to reach 28 million 480 lb bales in MY 2021/22.
The country’s cotton imports fell 62.72%, from 2.28 million 480-pound bales in MY 2019-2020 to 0.85 million 480-pound bales in the campaign. release 2020-21, according to TexPro. It is expected to increase again by 17.65% to reach 1 million 480 lb bales in MY 2021-22.
Regarding cotton exports, India exported 3.20 million bales of 480 pounds in MY 2019-2020, which increased 93.75% to 6.20 million bales. of 480 pounds in marketing year 2020-21. It is expected to remain the same in the 2021-2022 fiscal year.
As for cotton consumption in the country, it will drop from 20 million bales of 480 pounds in MY 2019-20 and from 24.20 million bales of 480 pounds in MY. 2020-21 to 26 million 480 pound bales in marketing year 2021-22.
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