In 2021, the Indian trading and farming communities had made substantial profits. Since May 2020, cotton has provided good results. Cotton has had a strong increase of around 65 percent in 2021, hitting new highs. This product is often referred to as "White Gold." Gold is frequently bought and stored with the intention of making a profit in the long run.

Cotton prices in India have risen as a result of strong domestic and worldwide demand, as well as fewer supplies. The basket had lost its rising momentum after the first week of November, owing to a faster rate of new season arrivals.

Cotton prices in India have steadied in recent weeks and have begun to rise on an optimistic assessment of export/domestic demand for cotton/cotton goods. Cotton prices in India have recovered from the bearish period after November, as arrival pressure began to ease. It's worth noting that since May 2020, the MCX cotton index has been heading upwards. After touching a low of Rs.14800/bale in May 2020, the benchmark contract closed near Rs.34000/bale in 2021.

According to latest data, global cotton production in market year (MY) 2019-20 was 26.43 million metric tonnes, down 7.60 percent from MY 2020-21 to 24.42 million metric tonnes. Cotton exports in the world totaled 8.98 million metric tonnes in MY 2019-20, rising 17.37 percent to 10.54 million metric tonnes in MY 2020-21. From 22.44 million metric tonnes in MY 2019-20 to 26.32 million metric tonnes in MY 2020-21, worldwide cotton consumption increased by 17.29%. These factors are expected to keep global cotton prices on the rise in 2021.

Another Good Year for Farmers:

Cotton consumption has been steadily increasing in India, Pakistan, Mexico, and Bangladesh, owing to rising demand and the impact of COVID-19 being mitigated. The worldwide cotton balance sheets for 2021/22 show increased production and consumption, as well as somewhat lower ending stocks, when compared to 2020-2021. Global consumption is expected to increase by 700,000 bales. In 2022, global ending stocks are expected to be 86.9 million bales, down 2.4 million bales from 2021. Cotton production in India is expected to be 330 lakh bales in 2021-22, down about 30-35 lakh bales from 2020-21. Due to severe rains in November in the growing regions of Maharashtra and the south, the Indian crop's production prognosis has been decreased. Another reason for the lower crop prediction is pest assault in North India. Domestic prices are comfortable setting new highs while the global markets retain their solid trend. As of December 28, managed money firms were 74,825 contracts net long in cotton, according to the CFTC's weekly report. The long positions were increased by 4,039 contracts, owing to price-favoring conditions in US cotton. Domestic consumption prognosis for the cotton complex basket, i.e. cotton seed/cotton fibre, cotton wash oil, cotton cake, etc., is improving as export prospects for cotton products remain positive and economic recovery continues. Overall, the cotton industry will have another strong year for farmers and other value chain participants.

Cotton prices are really high. This season has become a source of anxiety for the local textile industry, as units are seeing not only a rise in raw material prices, but also a scarcity of supplies.

In a press release, T. Rajkumar, chairman of the Confederation of Indian Textile Industry, stated that the average price of cotton in September 2020 was 37,000 per candy (355 kg) and jumped to 60,000 in October 2021, when the new cotton season began. The price reached a high of 70,000 on December 31. Furthermore, between October 1 and December 31, only roughly 120 lakh bales landed in the market, compared to the average inflow of 170 lakh to 200 lakh bales.

The chairman of the Southern India Mills' Association, Ravi Sam, stated that the cotton crop for 2021-2022 is expected to be good.

"It may be noted that the 11 percent total import duty existing on cotton has been the reason for the cartelisation of vested players to increase domestic cotton prices, making an abnormal profit at the cost of value added garment sectors," said Raja Shanmugham, president of Tiruppur Exporters' Association.

Cotton prices are really high. This season has become a source of anxiety for the local textile industry, as units are seeing not only a rise in raw material prices, but also a scarcity of supplies.

In a press release, T. Rajkumar, chairman of the Confederation of Indian Textile Industry, stated that the average price of cotton in September 2020 was 37,000 per candy (355 kg) and jumped to 60,000 in October 2021, when the new cotton season began. The price reached a high of 70,000 on December 31. Furthermore, between October 1 and December 31, only roughly 120 lakh bales landed in the market, compared to the average inflow of 170 lakh to 200 lakh bales.

The chairman of the Southern India Mills' Association, Ravi Sam, stated that the cotton crop for 2021-2022 is expected to be good.

"It may be noted that the 11 percent total import duty existing on cotton has been the reason for the cartelisation of vested players to increase domestic cotton prices, making an abnormal profit at the cost of value added garment sectors," said Raja Shanmugham, president of Tiruppur Exporters' Association.