Cotton production in India is expected to be 15 per cent over that of 2018-19. This will be the second highest on record. Harvested area in India is projected at a record 12.9 million hectares in 2019-20 as domestic prices and internal support price prospects favor cotton over competing crops. The above average monsoon rainfall is expected to provide an extended picking season, which is expected to increase the yield to a three-year high. Last season India’s cotton crop was at a decade low at 312 lakh bales.

Global cotton players are looking at India, with its record production and likely increased stock situations, to feed the world cotton market. This kharif season, India grew cotton on a larger area, at 127.67 lakh hectares, about six lakh hectares more than last year. Cotton prices are weak in the domestic market. Cotton prices hovered at Rs 41,900 per candy of ginned cotton, down from Rs 43,900 two months ago. Cotton trade bodies in India are yet to come out with their own crop estimate.

Global cotton production is about five per cent above 2018-19. The October production estimate includes decreases for Brazil, Pakistan, Australia, and the United States, which more than offset an increase for India.