Increased Cotton Use boosts the Textile Industry.

Cotton consumption has increased significantly in the ongoing 2023-24 season, driven by higher market arrivals and a jump in demand from textile mills.

According to current data from the Cotton Association of India (CAI), consumption during the first four months of the season, which run from October to January, has increased by about 19% compared to the same period last year.

In the first four months of the current cotton season, which runs from October to January, consumption climbed to an anticipated 110 lakh bales of 170 kg apiece, a significant increase over the previous season's 92.50 lakh bales.

Notably, consumption in the October-December quarter alone reached 81 lakh bales, representing a nearly 20% increase over the same period last year.

"Atul S Ganatra, President of the Cotton Association of India, highlighted that mills, which were grappling with losses during the same period last year, are now experiencing slight profits, consequently operating at full throttle," according to an interview with Business Line.

Mills are running at full capacity in North and Central India, whereas the South has a utilisation rate of roughly 75%.

Overall, Indian mills are operating at over 90% capacity this year.

The CAI has maintained its pressing estimate for the current season at 294.10 lakh bales, with total cotton supply predicted at 210.05 lakh bales by the end of January 2024.

Market arrivals during this period increased to 177.15 lakh bales, up from 115.70 lakh bales the previous season.

Furthermore, shipments have increased to 9 lakh bales from 4 lakh bales a year ago.

As the season develops, CAI anticipates a constant domestic consumption of 311 lakh bales, with exports of 14 lakh bales.

Closing stocks at the end of September 2024 are expected to be 20 lakh bales, suggesting a decrease trend from the previous season.

Closing stocks at the end of September 2024 are expected to be 20 lakh bales, suggesting a decrease trend from the previous season.

With a strong spike in consumption and a bright prognosis for exports, the Indian cotton sector is on a steady growth path, well-positioned to meet domestic and international demands.

The increase in cotton usage, along with good market conditions, bodes well for India's textile industry.

23/02/2024 06:25pm