India’s cotton area shrinks in Kharif 2024 as farmers shift to pulses, maize
Cotton acreages across the country for the Kharif 2024 cropping season are seen as lower as farmers in the key producing states of Gujarat and Maharashtra show preferences to plant more lucrative crops such as pulses and maize amidst a weakening trend in global prices.
The Cotton Association of India, the apex trade body for the sector, sees acreages declining in the kharif 2024 season over the previous year’s 124.69 lakh ha.
In North India, where the planting for kharif has almost been carried out, the acreages are down by close to half as farmers in states like Punjab and Haryana faced crop losses due to a rise in pest attacks — mainly the pink boll worm — last year amidst rising production costs.
“As per information received from North India members in the recent CAI meeting, cotton sowing in the current kharif season is reduced in by 40 to 60 per cent in state such as Rajasthan-Haryana and Punjab.” said Atul Ganatra, President, CAI.
In Gujarat, the largest producing state, the cotton acreages are expected to decline by 12-15 per cent this year, Ganatra said, based on the state’s trade feed. With parts of Gujarat receiving rains, farmers have already shifted to groundnuts and other crops, he added.
In Maharashtra, which has the largest cotton area in the country, the scene is no different from that in Gujarat. “Maharashtra state association and other trade members are expecting a 10-15 per cent reduction in area in the state,” Ganatra said. Farmers in the state are shifting from cotton to tur, maize and soyabean, Ganatra added.
Based on the feedback from the seed distributors, Ganatra said the sales of cotton seeds are slow in the state. “As per information received from the members, due to shortage of water not much of early cotton sowing is done in Central and South India,” Ganatra added. In MP the acreages are seen lower by a tenth, while in the South the farmers are waiting for the minimum support price (MSP) to be declared, he added.
The CAI President also said that the bearish trend in ICE Futures is also seen as having an influence on cotton sowing in India. The ICE cotton futures for December 2024 are trending lower at 70 cents per pound, which works out to the Indian rupee equivalent of ₹47,000 per candy. Presently, the cotton prices in India are hovering in the ₹55,000-57,000 range for the 29 mm.
“Lower December ICE futures is not good for the upcoming cotton sowing sowing. The lower futures is affecting cotton sowing as Indian farmers are keen waiting and watching the ICE futures on a day-to-day basis and then taking decision on sowing,” Ganatra added.
Cotton was planted in 124.69 lakh ha during the 2023-24 season, with Maharashtra topping the acreages at 42.34 lakh ha, followed by Gujarat at 26.83 lakh ha and Telangana at 18.18 lakh ha.