The U.S. Agricultural Counselor’s report stated that India’s cotton production in the 2021/2022 season is expected to be 28 million bales (1 bale = 480 pounds), with a planting area of 12.4 million hectares. Rainfall in early October delayed the harvest, but new cotton is coming to market faster, which is expected to drag down prices.
The report predicts that India’s cotton consumption this year will be 26 million bales, due to strong export demand for cotton yarn and textiles. At present, India’s cotton exports remain strong, but rising freight costs and shipment delays have become a major challenge. Textile mills are facing procurement problems due to rising prices of domestic cotton and higher tariffs on imported cotton.
This year, the minimum support price (MSP) in India is Rs 6,025. Currently, the domestic market price in India is 7,689 rupees per quintal, and the highest price farmers have received this year is 8,219 rupees per quintal. Cotton Corporation of India (CCI) is operating 71 procurement centres. In 2021/22, in addition to 41 procurement points, CCI has also opened 30 procurement centers.
The person in charge of CCI said that CCI will not purchase cotton with lower than average quality grade. CCI pays special attention to the grade of cotton, which is determined by the humidity level, which should be between 8% and 12%. If the moisture exceeds 12%, CCI will not purchase it. In addition, CCI will not purchase immature cotton or cotton with contamination marks. Rains during the current season have damaged the cotton crop, making it impossible for CCI to procure the cotton.
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