Total supply for the full season ending this September is estimated to be 41 mn bales (170 Kgs each). Total domestic consumption during the season will be 32.4 mn bales. Exports according to CAI will be 6.5 mn bales.An expert on Indian cotton market based in Mumbai stated however, there is some hope among traders that the export will be about 7 mn. Given the uncertain situation regarding tariff by China on imports from United States and the weakening of Indian rupee against dollar will be of some boost to Indian exports.
In November of last year, Indian production was expected to be about 37 mn bales, but pink bollworm infestation in Maharashtra, Telangana and Andhra Pradesh has reduced the output. However, stakeholders are paying close attention to this issue during the forthcoming planting season so that India’s leading cotton producing State, Gujarat does not face this insect situation. There is a need for quality cotton and the price difference between quality and average cotton is widening stated the Indian expert.
Indian meteorological department has predicted timely rainfall during this June-September timeframe, which will determine planting intentions. However, chances for diversification is also there as in 2017-18, edible oil sector performed well. Next 2-3 months is bullish for the cotton sector, said the expert.