Closing cotton stock to increase by 2.5 million bales this season

Reduced domestic consumption as well as exports coupled with higher production led by increased sowing area may increase closing cotton stock for 2022-23 season by 2.5 million bales (170 kg per bale) to nearly 5.8 million bales compared to previous season.

“Cotton season in India begins from October 1 and ends on September 30. As on September 30, 2022, closing cotton stock stood at 3.3 million bales. However, looking at consumption and export trends for the current season, domestic cotton consumption is expected to drop 2 million bales and export too is likely to reduce by 0.5 million bales. It means closing stock would go up to 5.8 million bales as on September 30, 2023,” said Atul Ganatra, president of Cotton Association of India (CAI).

According to Ganatra, another reason for increased cotton stock by the end of current season is higher cotton production. CAI has estimated cotton production of 34.4 million bales for 2022-23 which is almost 3.7 million bales higher than previous year. This year so far, sowing is complete in 12.8 million hectares which is one million hectares higher than 2021-22.

Source: Financial Express

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