Normal monsoon in India this year would increase the yield of the crop and would therefore add to the supply side

For the last two years, India's cotton production, affected by drought, recorded negative growth of (-) 8%. India being the world’s largest cotton producer, shares around one quarter of the global cotton production and therefore, any change in production in India has a significant influence in the global textile industry.

Normal monsoon in India this year would increase the yield of the crop and would therefore add to the supply side

Prices however maintained their low trajectory because of hoarding and the supply glut gripping the Chinese economy. Normal monsoon in India this year would increase the yield of the crop and would therefore add to the supply side. Acuité estimates that cotton production is likely to increase 6.6% to 32.15 million bales this financial year.

While considering the impact of Monsoon, Gujarat received deficit rainfall of 23%, whereas, Maharashtra and AP received normal rainfall.Gujarat, Maharashtra and AP, together produces around 70% India’s total cotton production. Cotton production in Gujarat would be marginally lower this year but will be offset by Maharashtra and AP.

Principal factors influencing the category  

Cotton Production, Acreage and Yield Status

Production: Million Tones; Acreage: Lakh Hectare; Yield: Kg/Hectare

(Updated as on March 15, 2017)