Despite concerns about global oversupply , Cotton Association of India (CAI) has maintained its pressing estimate for the 2023-24 season at 294.10 lakh bales of 170 kg each. These estimates were based on the inputs from cotton-growing state associations and trade sources.

Influenced by Brazil’s record-high production in 2022-23 season, India’s cotton prices declined marginally by 0.18 per cent.   The expansion of cultivation with rise in cotton productivity led to a surge in the global cotton supply. However, unfavorable economic conditions led to a sluggish demand during the year resulting in elevated inventories and a subsequent reduction in cotton prices worldwide. Also, infestation of pink bollworm in the cotton crop reduced from 30.62 per cent in 2017-18 to 10.80 per cent in 2022-23. 

According to the International Cotton Advisory Committee (ICAC), global cotton production is set to surpass consumption for the second consecutive year. Production of cotton lint is projected to grow by 3.25 per cent to 25.4 million metric tons, while consumption is forecasted to marginally decline to 23.4 million metric tons. 

Cotton consumption in the US is expected to decline while production and ending stocks are likely to increasing during the 2023/24 season. The global cotton market is undergoing long liquidation open interest dropping by 1.44 per cent drop in open interest. Cottoncandy prices are hovering at 56000. They are expected to stabilize at 56100. Various factors, including a delicate balance between global supply and demand, are influencing cotton prices in the current economic landscape.