ICAC: Indian farmers might be holding onto cotton
05/04/2023
The association, which represents cotton producing, consuming and trading countries, said: “Over the last few months, we have been paying close attention to the cotton sector in India, which has the largest planted area and second-highest lint production in the world.
“The arrival numbers have been unusually low, possibly because farmers — who so recently enjoyed near-record-high prices — are holding onto their cotton in the hope that prices, which have dropped recently, start to trend upward again.
“The pace of arrivals did pick up in March, however, and prices have stabilised slightly over the past few weeks so farmers may be starting to realise that accumulated debt will start to outpace any additional income they might gain by holding their cotton.”
The secretariat is projecting India's crop to be 5.2 million tonnes, after revising it downward by 391,000 tonnes in December and 257,000 more in February.
It projects global production at 24.55 million tonnes and consumption at 23.8 million tonnes.
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