The Cotton Association of India (CAI) has lowered its estimated cotton production for the 2017-18 crop year to 362 lakh bales of 170 kg each from 367 lakh bales estimated in February.
The Cotton Association of India (CAI) has lowered its estimated cotton production for the 2017-18 crop year to 362 lakh bales of 170 kg each from 367 lakh bales estimated in February. The lower production outlook is due to lower estimate of 2 lakh bales each for Andhra Pradesh and Karnataka, while production in other states is estimated to be lower by 1 lakh bales of 170 kg each. The CAI has lowered its estimate mainly due to the crop damage triggered by severe pink bollworm infestation and the scarcity of water in some states. The projected balance sheet drawn by the CAI has estimated total cotton supply for the season at 412 lakh bales, which includes the opening stock of 30 lakh bales at the beginning of the season. CAI has retained estimated imports at 20 lakh bales as in the previous month. The CAI has estimated domestic consumption at 330 lakh bales, which is 10 lakh bales higher than that estimated in February. The increase in consumption estimate is on account of the fact that several new textile mills in Gujarat and other states have already started operations resulting in 35 lakh new spindles, Atul Ganatra, president, CAI said. The CAI has also estimated an increase in exports for the season from 55 lakh bales to 60 lakh bales because of surge in demand for Indian cotton and increase in ICE futures prices. The carry-over stock at the end of this season on September 30, 2018 is estimated to be 22 lakh bales which is lower by 20 lakh bales than the previous closing stock of 42 lakh bales estimated in the previous month. As per the data received from various trade sources, the CAI estimates cotton arrivals upto February 28, 2018 at 247.10 lakh bales. Indian cotton has gained support from the weakening of the rupee against the US dollar as this has accelerated its export demand, the CAI said on Thursday. India has shipped around 30 lakh bales of cotton as of now while contracts for exports have been signed for 35 lakh bales in the current season. Indian cotton is the cheapest in the international market. The CAI has pegged India’s cotton exports at 55 lakh bales in the ongoing 2017-18 cotton year (October-September) as against 63 lakh bales a year ago. The cotton year in India begins in October and continues till September next year.