Weekly Prices of Raw Cotton and Cotton Yarn  in India

ICAC Cotton Country Report , USDA Estimates on Cotton World Markets & Trade

Cotton Statistics  : India

International Cotton Outlook

• With increased acreage and advent of Bt cultivation, the cotton production in the country in cotton season 2010/11 had been at 325 lakh bales (1 bale=170kg) as compared to 305 lakh bales in the previous year. Thus, India retained its position as the second largest cotton producing country in the world, after China.

    • Due to receipt of good prices for cotton as compared to other competing crops in the previous year, the cotton farmers were enthusiastic in increasing the acreage under cotton. As a result, the acreage under cotton in 2011/12 had reached a record level of 121 lakh hectares as compared to 111.43 lakh hectares in previous year.

  • With unfavourable agroclimatic conditions, inadequate availability of canal water etc., the cotton productivity since last three years has been declining. In cotton season 2010/12, the cotton productivity had been 496 kgs/ha as against 503 kgs/ha in previous year.

 Cotton prices were much volatile in year 2010/11 than any previous year.  Higher cotton prices caused the high prices of cotton products in downstream value added segments. Due already weak demand of cotton products in domestic market and quantitative restrctions of cotton yarn for exports market, the domestic consumption of cotton by mills in later period of cotton year 2010/11 declined substantially. Overall, the domestic cotton consumption in 2010/11 had decreased by around 2.3 at 253 lakh bales as against 259 lakh bales in the previous year.

  Besides abundant availability of cotton, the international cotton prices in 2010/11had been higher than domestic prices and there was good demand for Indian cotton, especially from neighbouring countries like China,  Bangladesh, pakistan etc. As a result, cotton exports from India in 2010/11 had been at 70 lakh bales.

Imports of cotton

  Like previous year, cotton imports into the country had once again been limited to short supply in ELS cottons at 5 lakh bales.