Cotton Acreage Trends Across Regions

As India approaches the kharif season, the cotton industry faces varied prospects across different regions. While the Central and South zones are expected to maintain their cotton acreages. Thanks to a forecasted normal monsoon, the North zone anticipates a significant reduction due to increasing pest infestations.

Central and South Zones

The Central Zone, encompassing Gujarat, Maharashtra, and Madhya Pradesh, alongside the South Zone that includes Telangana, Karnataka, Andhra Pradesh, and Tamil Nadu, have shown resilience. These areas, which collectively account for 76% of the country's cotton fields, are likely to maintain their acreage. However, the looming shortage of premium cotton hybrid seeds could impact cropping trends.

North Zone

Conversely, the North Zone, comprising Punjab, Haryana, and Rajasthan, is projected to see a 20-30% decrease in cotton acreage. Pest infestation is one of the reason. It have dampened the agricultural outlook in the region.

Challenges in Seed Availability

The cottonseed industry encountered significant challenges last year, particularly in Karnataka due to drought conditions, which severely impacted seed production. The Federation of Seed Industry of India (FSII) Director-General Ram Kaundinya highlights a potential 15-20% shortage in popular seed brands in the South and Central zones. This is exacerbated by the lack of buffer stocks, which traditionally mitigated shortages, according to M Prabhakara Rao, President of the National Seeds Association of India (NSAI).

Market Demand and Future Outlook

The demand for cotton hybrid seeds is expected to remain robust, with an estimated need for 4.5-5 crore packets. Despite current challenges, the cotton market's medium to long-term outlook remains promising, driven by growing demand from the textile industry.

While some regions brace for reduced cotton planting due to climatic and pest-related challenges, overall, the industry remains cautiously optimistic. With an expected 5% increase in overall acreages buoyed by normal monsoon forecasts, the future of India's cotton industry, while currently mixed, shows signs of resilience and potential growth