Cotton body retains estimate for 2019-20 season at 354 lakh bales

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Published: January 7, 2020 1:55:41 AM

The total cotton supply estimated by the CAI during October 2019 till December 2019 is 155.89 lakh bales of 170 kg each which consists of the arrivals of 125.89 lakh bales till December 31, 2019, imports of 6.50 lakh bales up to December 31, 2019, and the opening stock estimated by the CAI at 23.50 lakh bales at the beginning of the season.

Cotton, Cotton Association of India, CAI , economy newsCAI has estimated cotton consumption between October 2019 and December 2019 at 78 lakh bales of 170 kg each while the export shipment of cotton estimated by the CAI up to December 31, 2019, is 10 lakh bales of 170 kg each.

The Cotton Association of India (CAI), in its December estimate of the crop for the season of 2019-20 starting October 1, has retained its estimate at 354.50 lakh bales of 170 kg each at the same level as in the previous estimate.

The CAI has reduced its crop estimate of the Northern zone by 2 lakh bales from its previous month’s estimate, i.e. 61 lakh bales as compared to 63 lakh bales estimated earlier since there is a reduction of 2 lakh bales in the estimate of Lower Rajasthan compared to that of the previous month, the association mentioned. However, there is an increase of 2 lakh bales in the estimate of Maharashtra as compared to the estimate made in the last month as migration of cotton crop from Maharashtra to the neighbouring state is not likely to happen this year due to the participation of CCI in the market, Atul Ganatra, president, CAI, said.

The total cotton supply estimated by the CAI during October 2019 till December 2019 is 155.89 lakh bales of 170 kg each which consists of the arrivals of 125.89 lakh bales till December 31, 2019, imports of 6.50 lakh bales up to December 31, 2019, and the opening stock estimated by the CAI at 23.50 lakh bales at the beginning of the season.

CAI has estimated cotton consumption between October 2019 and December 2019 at 78 lakh bales of 170 kg each while the export shipment of cotton estimated by the CAI up to December 31, 2019, is 10 lakh bales of 170 kg each. Stock at the end of December 2019 is estimated by the CAI at 67.89 lakh bales including 30.89 lakh bales with textile mills and remaining 37 lakh bales with Cotton Corp and others (MNCs, traders, ginners, etc.).

The annual balance sheet projected by the CAI estimated total cotton supply till end of the cotton season, that means till September 30, 2020, at 403 lakh bales of 170 kg each (i.e. at the same level as estimated in the previous month).

The total cotton supply, including the opening stock of 23.50 lakh bales at the beginning of the cotton season, crop for the season estimated at 354.50 lakh bales and imports estimated by the CAI at 25 lakh bales, which are lower by 7 lakh bales compared to the previous year’s estimate at 32 lakh bales.

The domestic consumption estimated by the CAI for the entire crop year (up to September 30, 2020) is 331 lakh bales which is at the same level as estimated by the Cotton Advisory Board at their meeting held on November 28, 2019. The CAI has estimated exports for the season at 42 lakh bales which is at the same level as estimated in the previous year. The carryover stock estimated at the end of the season is 30 lakh bales.

The Crop Committee of the Association has retained cotton export for the season 42 lakh bales. There is no change in the projection of import and the same is retained at 25 lakh bales as estimated by the CAI previously. The import figure is lower by 7 lakh bales compared to that estimated for the last year. Shipment of imports from October 1, 2019, to December 31, 2019, which have reached Indian ports are estimated at 6.50 lakh bales while the balance of 18.50 lakh bales is estimated to arrive Indian ports during January1, 2020, and September 30, 2020 (total imports estimated during the entire season) are 25 lakh bales.

Cotton export shipments from October 1,2019, to December 31,2019, which have already been shipped are estimated at 10 lakh bales while balance of 32 lakh bales are expected to be shipped during January 1, 2020, till September 30, 2020 (total exports estimated during the entire season are 42 lakh bales).

Consumption by Indian spinning mills for three months i.e. from October 1, 2019 to December 31, 2019, is estimated at 78 lakh bales. Cotton stock held by mills in godowns on December 31,2019, is estimated at 30.89 lakh bales.

Cotton Corp, MNCs, ginners and MCX are estimated to have stock of about 37 lakh bales as on December 31, 2019, which is equal to about 39 lakh running bales. Thus, the total stock held by spinning mills and stockists on December 31, 2019, is estimated at 67.89 lakh bales of 170 kg each, which is equal to about 72 lakh bales. The closing stock as on September 30, 2020, is estimated by the committee at 30 lakh bales of 170 kg each, CAI said.

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