Overall, cotton sowing in India may be the same or a little lower last year. Late onset of monsoon last year had delayed sowing across key states such as Maharashtra, Gujarat, Telangana and Andhra Pradesh, where sowing traditionally takes place in late June and early July. Steady rain through June and fears of a dry spell after the first week of July appears to have prompted more planting since the crop can thrive even with low moisture. Most states, except some northern ones and Tamil Nadu and Karnataka, have reported higher cotton acreage.

Farmers are planting more cotton due to chances of low rainfall even if returns are low. In Telangana, for example, there’s been no constant rain for the last 15 days and sowing is up five to ten per cent. In Maharashtra, the country’s largest cotton producer, almost three million hectares have been covered, from 8,35,000 hectares last year.

Cotton prices were low last year. Prices shot up marginally in the beginning of July on a spurt in export demand but have since stabilised. In future prices are likely to be pressured, with China unlikely to import Indian cotton in the near future and surplus domestic stock.