India’s cotton exports can fall to the lowest level in 18 years in 2022/23 as production lagged behind domestic consumption for the second straight year. Lower exports from the world’s biggest producer could support global prices. It could also lift domestic prices and weigh on the margins of local textile companies.
Cotton Association of India (CAI), a trade body said that exports could fall to 2 million bales in the current marketing year ending on 30th September, the lowest since 2004/05 and well below 4.3 million bales last year.
Production could fall to 29.84 million bales, down from the previous estimate of 30.3 million bales.
Local consumption could also ease by 2.2 per cent from a year ago to 31.1 million bales.
CAI also said that the fall in local production could bring down cotton stocks at the end of 2022/23 marketing year to 1.4 million bales, the lowest in more than three decades.
