Cotton prices rose by 1.07 per cent, reaching Rs. 56,900 per candy. This increase is due to a major reduction in cotton acreage in key Indian states. Punjab, Haryana, and Rajasthan saw their cotton fields drop to 10.23 lakh hectares from last year’s 16 lakh hectares. Punjab’s cotton area fell sharply to 97,000 hectares, down from 7.58 lakh hectares in the 1980s and 1990s. Rajasthan and Haryana also experienced reductions, with their cotton acreage decreasing to 4.75 lakh hectares and 4.50 lakh hectares, respectively. The delay in shipments from major global producers like the US and Brazil has increased demand for Indian cotton, especially from neighbouring countries’ mills.

Firm cottonseed prices are contributing to the rise in natural fibre prices. Sowing for the Kharif 2024 season has begun in southern states like Karnataka, Telangana, and Andhra Pradesh, following the monsoon rains. The USDA’s 2024/25 cotton projections indicate higher beginning and ending stocks than previously estimated.

Despite stable production, domestic use, and export forecasts, the season average upland farm price has been reduced by 4 cents to 70 cents per pound due to lower new-crop cotton futures. Ending stocks in the US are expected to rise by 400,000 bales to 4.1 million. Globally, the 2024/25 cotton balance sheet shows increases in beginning stocks, production, and consumption, with world-ending stocks projected to reach 83.5 million bales, up by 480,000 bales from May.