According to CAI, cotton fields could decline by 10% as a result of decreased prices and yields

The Cotton Association of India (CAI) predicted that in FY ’23/24, declining yields and low-price realisation would result in a roughly 10% decrease in total sowing. Official data indicates that during the 2023 Kharif season, the cotton crop was grown on approximately 12.38 million hectares, a decrease of more than 3% from the previous year’s harvest.

“Cotton seeding has already decreased by an average of 18 percent FY’23 and worry if sowing persists cotton productivity could decline even more,” says CAI President Atul Ganatra.  According to a report by the CAI committee, India’s cotton production is expected to reach a record low of 29.4 million bales (1 bale = 170 lb) in FY’22, an 8 percent decrease from FY’21.

According to Ganatra, the biggest challenge facing the cotton industry in India is growing. Of the 33 million hectares of total cotton acreage worldwide, India contributes around 12.5 million hectares, or 38%, to the crop.

Its production per hectare is about 2.22 bales, while the average global yield is nearly 675 kg lint per hectare (roughly 41% less).

“Climatic changes and our outdated BT seed technology are the main causes of this decline in cotton yield.” Similarly, as 73% of the area used for cotton production is not irrigated, El Nino effects also devastate India’s cotton crop.

India’s cotton production per hectare peaked at 572 kg in the last ten years, but yields have dropped by more than 30% since then since equipment still has to be updated.

Though the country’s output has dropped to about 29.4 million bales, CAI estimates that it may require 41.4 million bales of cotton per year.