Cotton has transformed into white gold!! Break the record of 2022!!!
The information about the fresh happenings in national and international mandis. Detailed analysis of the trends in prices of jeans and crops, along with the complete details of the speed and slowness of demand and supply.
The opinions of traders, farmers, and how you can profit from your crops are all being covered on Market Times TV.
Stay tuned for all the news related to farming and agriculture, only on Market Times. Get real-time updates on market prices, auction rates, forecasted trends, and more. Subscribe to our YouTube channel and stay updated: [YouTube Link]. Visit our website for the latest updates: [Website Link]
Market Times TV is the first 24×7 online business news channel that provides comprehensive coverage of commodities with a focus on real-time information and expert analysis. Our platform is supported by a dynamic website for a 360-degree coverage of the commodity market.
Now, let’s delve deeper into the world of commodities, starting with cotton. Here, we will explore the current scenario of the cotton market, analyze the production, demand, and supply trends, and look at the potential for profitability.
Cotton has been a vital commodity in the agricultural sector, often referred to as “white gold” due to its profitability and importance in the textile industry. In recent times, the cotton market has witnessed significant fluctuations in prices, with cotton reaching unprecedented levels in 2022. The market is poised for a record-breaking year, with the potential to break the previous high.
In the past month, cotton prices have been on a steady rise, with cotton moving from homes at 000 to reaching homes at 000 per quintal. This rapid surge in prices has generated a buzz in the cotton market, leading to speculations about reaching new record levels in 2022. Despite touching a peak of 000, cotton has now settled around 000 per quintal, showing a remarkable increase in just 30 days, which is equivalent to one month.
Market Times TV will present a detailed report on how far the prices can go and when to expect this level. But before we dive into the market speculation, it is essential to conduct a thorough investigation into the facts that have led to this bullish trend. It is also crucial to assess the strength of this upward trend and the price levels to anticipate.
Let’s first talk about production and focus on India’s contribution to global cotton production. India’s cotton production for the current season has plummeted to its lowest level in 15 years. This decline in production has not only affected the domestic market but has also reverberated in international markets.
The ongoing cotton season of 2023-24 is expected to witness a reduced cotton output of nearly 25 million bales. A bale in India consists of 170 kilograms of cotton, which has seen a decline in production per hectare due to adverse weather conditions. The current cotton season has also witnessed a reduction in the cotton area by nearly 2 lakh hectares.
In the ongoing season, approximately 2 lakh hectares of cotton cultivation seems to have been reduced. Gujarat, with a production of around 85 lakh bales, Maharashtra with 76 lakh bales, and Telangana with 30 lakh bales, are the top cotton-producing states in India. Karnataka is expected to produce around 18 lakh bales, while Madhya Pradesh, Haryana, and Punjab are expected to account for 18 lakh, 16 lakh, and 15 lakh bales respectively.
India’s total cotton production is estimated at 295 million Indian bales, showing a decrease in production per area, driven by adverse weather conditions. The domestic cotton industry has also experienced a reduction in the sown area, indicating a decline in production.
The current cotton season has been challenging for Indian farmers, with a reduction in crop area and production. The data reveals that India’s cotton area is significantly lower than the global average in terms of production per hectare. The total production disparity between China and India in terms of cotton production is staggering, with India lagging behind significantly.
China, being the largest cotton producer globally, produces nearly 33 million bales of cotton, exhibiting its dominance in the global cotton market. In comparison, India’s cotton output is approximately 42 million bales, signaling a substantial gap between the two countries. Understanding the disparities in cotton production between China, the USA, and India is crucial for Indian farmers to enhance their productivity and competitiveness in the global cotton market.
From an international perspective, the global cotton production for the current season has witnessed a slight decline. The overall global cotton production has dropped from 1163 million US bales to 1130 million US bales, with countries like the USA, China, and Argentina contributing to this global trend.
The global cotton production trend is especially significant for countries like Brazil and Argentina, which have experienced an increase in cotton production. Brazil’s cotton production per hectare has seen a substantial surge, leading to an overall increase in total cotton production. This boost in production has the potential to impact global cotton prices and further influence the cotton market dynamics.
As we witness these fluctuations in cotton production and prices, it is essential to understand the driving factors behind these trends. Factors such as weather conditions, market demand, and global supply chains play a significant role in shaping the cotton market dynamics.
In conclusion, the cotton market is currently witnessing a surge in prices, with the potential to break record levels in 2022. The fluctuations in cotton production across different countries, coupled with market demand and supply dynamics, will continue to influence global cotton prices. It is crucial for farmers and traders to stay informed about these market trends to make informed decisions and capitalize on potential opportunities in the cotton market. Stay tuned to Market Times TV for the latest updates and analysis on the cotton market.
source
