Cotton production in India is either declining or stagnant. So says the RBI. Production in Andhra Pradesh declined from 2.508 million bales to 1.6 million bales in fiscal 2020-21. Production has increased in Rajasthan and Maharashtra.Gujarat’s cotton production has declined from 8.617 million bales to 7.212 million bales.India’s total cotton exports were estimated at four million bales in fiscal year 2022.

India’s cotton exports account for ten per cent of the total global export. In fiscal year 2021, India’s cotton exports were worth $6.3 billion, with production hitting 352.5 lakh bales. India’s cotton exports this year may fall short of estimates. Export enquiries are poor as Indian cotton is more expensive compared with world cotton prices. The season started with very poor opening stock. Arrivals are not picking up as expected and domestic mills are gradually increasing capacity utilization. Cotton arrivals in November usually surpass 1.5 lakh bales a day. At present, it is at 1.3 lakh bales a day. In several areas, sowing and harvesting have been delayed. Further, farmers are waiting for prices to improve. Prices are down 35 per cent already. So farmers are not selling cotton. But there are no signs that prices would improve either.