World’s second-largest cotton producer India’s output of the natural fibre is set to increase by 3% to around 29.7 million bales, according to the U.S. Department of Agriculture (USDA).
The average yield is expected to increase by 5% to 497 kilograms per hectare due to expectations of normal monsoon.
Domestic consumption is also set to rise as the country recovers from the Covid-19 pandemic.
Farmgate prices of cotton have increased over the minimum support prices of INR 5,825 per 100 kilograms. Though in certain parts prices have risen by as much as 4-10% over the minimum support price, the fibre does stand to face strong competition from soybean and rice as their prices have also increased.
India accounts for about one-third of the global cotton area and is primarily planted between April and September.