Mumbai, 09 Sep (Commoditiescontrol): Heavy rainfall in Gujarat has sparked significant concerns over a possible decline in cotton production for the 2024-25 season, exacerbating already weak crop forecasts and propelling domestic prices upward. In a span of just two weeks, prices surged by Rs 3,000 per candy (356 kg), touching Rs 60,000 per candy this Thursday.
The culmination of the 2023-24 season anticipates a downturn in India's cotton production, with estimates ranging between 315 to 325 lakh bales (170 kg each), a stark contrast to the 336 lakh bales recorded in the prior season. The GujCot Association highlights a downturn in Gujarat, with production dwindling from 93 lakh bales in 2022-23 to an estimated 89 lakh bales in 2023-24.
Forecasts for the upcoming 2024-25 cotton year suggest a further reduction in production by 5-10% due to the adverse weather conditions impacting Gujarat, a key cotton-producing state. This anticipated shortage is likely to continue propelling domestic prices upwards, rendering Indian cotton less competitive on the global stage and adversely affecting exports.
The textile industry is feeling the pinch of rising cotton costs. Rahul Shah, co-chairman of the Textile Task Force at the Gujarat Chamber of Commerce and Industry, emphasized that the higher domestic prices have eroded the global competitiveness of Indian cotton. The industry stakeholders are urging measures to enhance cotton productivity and advocate for the removal of customs duties on the raw material.
Additionally, Jayesh Patel, senior vice president of the Spinners' Association Gujarat, voiced concerns that the recent rainfall could further reduce Gujarat's overall cotton output. The resultant hike in cotton prices has pushed yarn prices up, diminishing demand and straining the spinning mills. This economic strain threatens to curtail production amidst heightened international competition.
With the new cotton season commencing in October, Punjab is expected to see early crop arrivals before the end of September. However, the recent climatic disturbances in Gujarat raise alarms about potential production shortfalls that could challenge the industry's profitability and standing in the global market.
(By Commoditiescontrol Bureau; +91-9820130172)
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