Question

What is the demand of cotton in the international market?

Answer 1

Lower realisation prompted farmers to opt out of cotton crop, thereby reducing the area by over 10 per cent for the year 2016-17, informed cotton experts.

Also, as per the estimates by international cotton body, global cotton prices are likely to remain firm amid tight demand-supply condition.

At the Annual General Meeting (AGM) of the Cotton Association of India (CAI), its President Dhiren Sheth maintained that cotton prices were at lower levels almost during the entire 2015-16 season, resulting in lower realisation.

This has led to a reduction of over 10 per cent in the acreage under cotton during 2016-17.

“However, due to the improvement in productivity expected on account of better weather conditions across all cotton growing regions of the country, the country expects to produce about 345 lakh bales (of 170 kg each) during 2016-17,” Sheth maintained in his address.

On the international demand-supply front, the International Cotton Advisory Committee (ICAC) has predicted consumption outpacing the production thereby leaving less room for a bearish trend in cotton prices.