``Even when the incidence of closure of textile mills is rising in the country, the existing ones are striving hard and are working over 100 per cent of their installed capacities,'' Mr Khatua said. ``This is contributing to a rising trend in cotton consumption by textile mills and let there be no misgivings of lower cotton consumption by the mills during the year.''

Mr Khatua was addressing members of the cotton community on Friday at the All India Cotton Trade Association Meeting held in Vadodara (Gujarat).

The mill consumption, according to Mr Khatua, for November 2000 is higher by some 30,000 bales (of 170 kg each) or three per cent to 12.25 lakh bales, up from 11.90 lakh bales in October 2000. ``As the production of cotton is cyclical, so also the consumption too is cyclical. We have incorporated these figures in our balance sheet and therefore, I can say that the cotton balance sheet of the Cotton Advisory Board is more clean and reliable than what it was earlier''.

Accordingly, with rising cotton consumption the year-end stock of cotton may be lower at around 35-36 lakh bales and not around 50 lakh bales as has been indicated by the director of East India Cotton Association (EICA). Earlier, giving out the cotton economy's balance sheet, EICA vice president KF Jhunjhunwalla had said that the cotton consumption by mills is feared to be lower this year, with the continued closure of cotton mills in the country.

This situation may see cotton stock at the year end (October 2001) to around 40.50 lakh bales, almost same in the last cotton year.