Despite forecast of good monsoon, farmers worried about cotton crop, impact on textile industry will be visible
Farmers are concerned about the cotton crop even if a favorable monsoon is predicted; the impact on the textile industry will be evidentThis year, cotton prices are expected to be under pressure in global markets, but Indian farmers have other concerns as well, which will impact the textile industry.Globally, the cotton season will begin on August 1 and production is expected to increase in the 2024-25 season. Good cotton yields in Brazil, Turkey, and the US will increase global supply, which is likely to put pressure on prices. In particular, cotton production in the United States is expected to increase this year and the country will be a significant contributor to global supply.Reason for concern for cotton farmers in IndiaIn India, farmers are worried since the beginning of the cotton season. There are signs of reduction in cotton production in both India and China, and the supply shortage from these countries is not expected to have any impact on the global situation as additional supplies will be available from the US to compensate.Indian farmers expect prices to riseIn India, cotton prices in the mandis are higher than its MSP, but farmers are still expecting higher prices. Cotton arrivals are decreasing in the markets and global exports are increasing. Farmers feel that their cotton can be sold at a much higher price in the world market.How will be the cotton prices in India?Since the supply of cotton is being reduced by farmers in India, and the crop is being produced abundantly from the US, there is a situation of double suspicion. According to NASS's Crop Progress Report, as of May 5, 24% of cotton has been planted in the US. If it is compared with the average of last year and last five years, it is four percent less.In fact, the country saw a 137% increase in cotton exports from last October to March, adding up to 18 lakh bales. Against this, it was 7.5 lakh bales in the same period last year. One bale contains an average of 170 kg of cotton, indicating heavy exports, which suggests that India's demand for cotton has increased.India's textile industry is worried that this time they may have to face a cut in supply due to shortage of cotton. Textile prices have risen over the years, and if cotton is in short supply, the impact of raw material shortage will have a negative impact on textile and clothing production. Despite expectations of a good monsoon here, less cotton is being sown this year because farmers have not yet supplied their entire supply to the market and are waiting for higher demand. As a result, there is a risk of reduction in cotton production, which is likely to cause disruptions throughout the supply chain.Read more :- Preparations for Pre-Seasonal Cotton Cultivation in Khandesh in Full Swing
