India: Cotton and Products Update

FAS Mumbai (Post) forecasts marketing year (MY) 2022/23 cotton production at 27.7 million 480 lb. bales on an area of 12.8 million hectares. The current sowing progress indicates that farmers are preferring to plant higher cotton area due to prevailing high market prices. Indian yields are expected to improve by three percent due to above normal rains in major cotton growing regions. Indian cotton lint prices are 15 percent higher than Cotlook A-Index prompting mills to import and limit domestic buying. Mill consumption is estimated at 26.5 million 480 lb. bales as new crop arrivals improves availability and lowers fiber prices. Depreciating Indian rupee will support higher raw cotton and textile export prospects, but limit imports to only extra-long staple cotton.