India's acreage under cotton during the ensuing 2015-16 season is going to be less than that of the current crop year. Yield is, however, likely to be higher during the 2015-16 crop season due to good and timely rainfall in the cotton growing areas. Production for the 2015-16 season, therefore, is expected to be similar to that of the 2014-15 crop year. However, yield may go up due to timely rainfall in the cotton growing areas and the crop for the next cotton season is expected to match the previous year’s figures.

The total cotton supply in the next season is estimated at 470.65 lakh bales while the domestic consumption is pegged at 325 lakh bales, leaving a surplus of 145.65 lakh bales for exports. Mill consumption is estimated to be 285 lakh bales with demand from small scale units and non-mills also supporting the bullish trend in consumption.

The Cotton Corporation of India has procured about 87 lakh bales to provide price support to farmers. However it may not be able to sell a sizeable quantity of cotton at the end of the season. Global cotton output is estimated to decline by nine per cent in the crop year 2015-16 on diversion of acreage to other remunerative crops.