CAI estimates India’s domestic cotton demand drop nearly by 6% in 2022–23
The Cotton Association of India (CAI) has estimated that India’s domestic cotton demand for the 2022–23 season up to September will be lower by about 18 lakh bales (170 kg each) at 300 lakh bales, or nearly 6% less than last year’s 318 lakh bales.
At a meeting on Monday, the Cotton Crop Committee of the association said that the drop in domestic consumption was because mills were running less because there wasn’t much demand for yarn and cloth.
The trade group for cotton said that spinning mills only ran at 40–60% capacity in the first quarter. This could mean that India will use less cotton starting in October 2022.
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Closing stocks
‘Given the unfavorable situation, cotton exports are expected to drop by 5 lakh bales to 30 lakh bales for the year, down from the earlier estimate of 35 lakh bales,’ said Atul Ganatra, President of the Cotton Association of India (CAI). He said that because cotton consumption will go down by 20 lakh bales and exports will go down by 5 lakh bales, the closing cotton stock on September 30, 2023, will go up by 25 lakh bales to 57.89 lakh bales, which is more than the previous estimate of 32.89 lakh bales.
Last year, India exported 43 million bales of cotton to other countries. Ganatra, on the other hand, said that there wasn’t much demand for yarn and clothes on the export market.
Spot prices gin
Spot prices for ginned 29 mm cotton were quoted at ₹69,000 per candy (356 kg) on Monday, November 14, compared to ₹66,700 a year ago. The CAI said that the total amount of cotton that came in during the first month of the cotton season was estimated to be 18.35 lakh bales.
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The association’s crop estimate for Gujarat, Haryana, and Punjab has been changed. It has increased the crop estimate for Gujarat by 2.5 lakh bales, making the total crop estimate for the largest grower 93.5 lakh bales. Haryana’s production estimate has been cut by 2 lakh bales to 14.5 lakh bales, and Punjab’s crop estimate has been cut by 0.5 lakh bales to 4.5 lakh bales.
On the import side, CAI thinks that 12 lakh bales of cotton will be brought in for the crop years 2022–23. This is a drop of about 2 lakh bales from the 14 lakh bales that were thought to be brought in for the crop year 2021–22.
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