India: Cotton and Products Update January 2024

FAS Mumbai forecasts marketing year (MY) 2023/24 cotton production at 26 million 480 lb. bales on 12.7 million hectares area planted, unchanged from the previous forecast. A strong pace of new crop arrivals during the first four months of the MY indicates a much larger crop size than previous trade estimates. Farmers have been forced to sell under the government minimum support price (MSP) procurement system due to poor demand from the private sector. Post forecasts MY 2023/24 mill consumption to remain at 24 million 480 lb. bales, as low fiber and yarn prices spurn exports and lead to a marginal recovery in demand.