Indian traders and mills have contracted imports of 7 lakh bales (one bale is 170 kg) in the five months since October 1, 2016, the start of the cotton year. This is higher by 20% compared to the same period of the previous year. Indian Cotton Federation expects that the total cotton imports for 2016-17 will not be less than the previous year.
The prices of cotton were at record before the harvest of the new crop. It had fallen to Rs 38,000 candy as the new harvest hit the market and was Rs 39,000 candy at the time of demonetisation. The prices of cotton are currently hovering at Rs 43,000 candy and are expected to decline to Rs 41,000 candy in the next month or two.
India’s 2016-17 cotton production has been projected to be 341 lakh bales as per the Cotton Association of India, while the Government of India has pegged the production at 321 lakh bales.