Heavy rains, pest attacks may result in lowering India’s cotton production
News: As per media reports, cotton prices have been rising owing to reports of crop losses due to pests and heavy rains across cotton-growing areas in India despite a larger area under cotton this year.
View: High probability of cotton production being adversely impacted in India in the next cotton season is expected to keep cotton prices elevated till clarity emerges on the actual cotton production in the country. The new cotton would start reaching the market in October-November 2022, which could lead to softening of cotton prices, to some extent. However, in the near term, cotton prices could remain elevated, which could negatively impact utilisation and profitability of players operating in the entire textile value chain from yarn to garments.