New Delhi, Feb 22 (KNN) Cotton consumption has witnessed a significant upturn in the ongoing 2023-24 season, propelled by higher market arrivals and a surge in demand from textile mills.

According to recent data from the Cotton Association of India (CAI), consumption during the initial four months of the season, spanning from October to January, has surged by approximately 19 percent compared to the same period last year.

In the first four months of the current cotton season, spanning from October to January, consumption soared to an estimated 110 lakh bales of 170 kg each, marking a substantial uptick from the previous season's 92.50 lakh bales.

Notably, the October-December quarter alone witnessed a consumption of 81 lakh bales, showcasing a remarkable increase of almost 20 percent compared to the corresponding period last year.

"Atul S Ganatra, President of the Cotton Association of India, highlighted that mills, which were grappling with losses during the same period last year, are now experiencing slight profits, consequently operating at full throttle," stated in an interview with Business Line.

Particularly in North and Central India, mills are operating at full capacity, while the utilisation rate in the South stands at around 75 percent.

Overall, Indian mills are running at an average capacity of approximately 90 percent this year.

CAI has maintained its pressing estimate for the ongoing season at 294.10 lakh bales, with total cotton supply estimated at 210.05 lakh bales by the end of January 2024.

Market arrivals during this period surged to 177.15 lakh bales compared to 115.70 lakh bales in the previous season.

Furthermore, exports have doubled to 9 lakh bales compared to 4 lakh bales a year ago.

As the season progresses, CAI predicts a stable domestic consumption of 311 lakh bales, with exports estimated at 14 lakh bales.

Closing stocks at the end of September 2024 are anticipated to be 20 lakh bales, indicating a downward trend compared to the previous season.

With a robust surge in consumption and promising outlook for exports, the Indian cotton industry remains on a steady growth trajectory, poised to meet both domestic and international demands.

The surge in cotton consumption, coupled with favourable market conditions, signifies a promising outlook for the textile industry in India.

(KNN Bureau)