Cotton & MMF outlook-2020

摘要

After registering a growth of about 7.2 per cent in cotton season(CS)2017-18,India’s cotton production is likely to witness a decline of about 15.7 per cent in CS 2018-19 with production at 5.3 billion kg during the year on back of fall in acreage under cotton due to unfavourable weather conditions and uneven and inadequate rainfall in key cotton growing states.Area under cotton fell by about 1.5 per cent during CS 2018-19 to 12.2 million hectares.Cotton prices during the year remained largely stable or increased only marginally on back of weak demand in the market.In CS 2018-19,domestic consumption of cotton is expected to marginally improve on a y-o-y basis with a plckup in demand from spinning mills along with improvement in exports demand,majorly from China along with comparatively higher MMF(man-made fibres)prices due to increasing input cost.