Cotton area in India may rise four per cent to 12.4 million hectares and production by 10 per cent to 6.5 million tons. The arrival of cotton during April 2016 is estimated at 2.22 million bales against 2.70 million bales during the same month last year.

Cotton, a kharif crop, is grown during the June-September monsoon season and harvested from October. By April farmers exhaust their crop and arrivals reduce substantially after that.

The textile industry needs about 30 million bales of cotton per year. World cotton production is expected to increase slightly, capping the reduction stocks in 2016-17. After contracting by nine per cent to 31.2 million hectares in 2015-16, area under cotton worldwide is projected to expand by one per cent to 31.4 million hectares, as declining prices for competing crops in 2015-16 encourage farmers to return to cotton in 2016-17.

In addition, the world average yield is forecast to improve by four per cent to 732 kg per hectare and production could increase by four per cent, from 22 million tons in 2015-16 to 23 million tons in 2016-17.

In 2015-16, world cotton imports are expected to decline by three per cent. Restrictions on cotton imports and sales from reserves may cause stocks in China to fall by seven per cent in 2015-16.