The estimate of the cotton imports into India has been maintained by the CAI at the same level as estimated in the previous month i.e. at 15 lakh bales.
The Cotton Association of India (CAI) has increased crop estimates for the season of 2019-20, which began October 1, 2019. The estimates have been increased to 335.50 lakh bales of 170 kg each compared to its previous estimate of 330 lakh bales made during the last month.
The production estimate for the North zone has been increased by 1 lakh bales (i.e. 50,000 bales each for the States of Haryana and Lower Rajasthan) while the production estimate for the Central zone has been increased by 4 lakh bales (i.e. 3.50 lakh bales for the State of Maharashtra and 50,000 for the State of Madhya Pradesh). The production estimate for the South zone has also been increased by 50,000 bales (i.e. 25,000 bales each for Andhra Pradesh and Karnataka compared to the crop estimates for these states made during the last month.
The cotton crop finalized by the CAI for the last year i.e. for the crop year 2018-19 was 312 lakh bales of 170 kgs. each. The Crop Committee of the Association has estimated total cotton supply till end of the cotton season i.e. upto September 30, 2020 at 382.50 lakh bales of 170 Kgs. each which consists of the opening stock of 32 lakh bales at the beginning of the cotton season on October 1, 2019, crop for the season estimated at 335.50 lakh bales and imports estimated by the CAI at 15.00 lakh bales. The imports are estimated to be lower by 17 lakh bales compared to the previous year’s estimate of 32 lakh bales.
According to the association, the domestic consumption for the entire crop year i.e. upto September 30, 2020 has been estimated at 280 lakh bales i.e. at the same level as estimated in the last month. The consumption for the crop year 2019-20 was earlier estimated by the CAI at 331 lakh bales but the same was later reduced by 51 lakh bales due to the lower consumption of cotton on account of disruptions caused by the COVID-19 pandemic in the country.
The CAI has retained its export estimate for the season at the same level as estimated in the previous month i.e. at 47 lakh bales against 42 lakh bales estimated earlier. The increase of 5 lakh bales in the export estimate than estimated in the previous year was made looking to the favourable conditions existing for exports of cotton from India. The carryover stock estimated at the end of the season is 55.50 lakh bales.
The estimate of the cotton imports into India has been maintained by the CAI at the same level as estimated in the previous month i.e. at 15 lakh bales. This import estimate is lower by 17 lakh bales compared to that estimated for the last year. The Indian cotton arrivals during the months of October 2019 to June 2020 are estimated at 327.02 lakh bales of 170 kgs each which are equivalent to 347.46 lakh running bales of 160 kgs each. The closing stock as on September 30, 2020 is estimated by the committee at 55.50 lakh bales of 170 kgs each which is equivalent to about 59 lakh running bales of 160 kgs each.