Lower exports from the world’s biggest producer could support global prices. It could also lift domestic prices and weigh on margins of local textile companies.
Exports could fall to 2 million bales in the current marketing year ending on Sept. 30, the lowest since 2004/05 and well below 4.3 million bales last year, Cotton Association of India (CAI) said in a statement.
Production could fall to 29.84 million bales, down from the previous estimate of 30.3 million bales, the CAI said.
Local consumption could also ease by 2.2% from a year ago to 31.1 million bales, it said.
The fall in local production could bring down cotton stocks at the end of 2022/23 marketing year to 1.4 million bales, the lowest in more than three decades, the trade body said. (1 bale= 170 kg)
