India: Cotton and Products Update

FAS Mumbai forecasts marketing year (MY) 2023/24 India cotton production at 26 million 480 lb. bales on 12.7 million hectares area planted, unchanged from the previous forecast. Farmers in southern India have replaced 17 percent of last season’s cotton area to maize, paddy, and oilseeds to take advantage of higher price expectations. A slow pace of new crop arrivals is observed as seed cotton prices have fallen below the minimum support price and farmers await government procurement operations. Post forecasts MY 2023/24 mill consumption at 24 million 480 lb. bales, up two percent from the previous estimate, as low fiber and yarn prices spurn exports and lead to a marginal recovery in demand.