Cotton prices likely to touch ₹75,000 per candy by mid-2023 as demand rise amid lower production

Cotton prices are likely to touch ₹75,000 per candy by the middle of 2023, as the demand rise and crop output falls. Cotton Association of India's president Atul Ganatra has said that, India’s low cotton production with higher consumption will soon change its status from a net exporter to an import country.

As per Business Line, currently, the cotton prices trade around ₹62,500–63,000 per candy and are expected to rise further steadily with arrivals drying up. The rise in price is anticipated due to the reduction in export quantity this year. While India exported 42 lakh bales last year, this year it is expected to fall between 30-25 lakh bales. Until March, India has exported 12 lakh bales of cotton.

The global cotton prices are trading at a four-month low due to weak demand. However, Indian mills haven't seen a slump in demand due to higher cotton consumption. The global cotton price outlook remains uncertain for the year 2023-24. Planted acreage is expected to decrease due to high input costs and competition from other crops globally.