Source: The Hindu Businessline

Our Bureau Mumbai, June 10

The Cotton Association of India (CAI) has projected cotton output of 352 lakh bales (lb) and total supply of 425 lb in its May estimate. However, output in key growing areas of the north and central zone is expected to fall sharply.

The total cotton output in the northern zone including Punjab, Haryana and Rajasthan is expected to drop leading to lower production at 54 lb against 64 lb registered last year. Similarly, in the central zone, which includes Gujarat, Maharashtra and Madhya Pradesh, the cotton production is estimated lower at 174 lb (204 lb). Production in Gujarat is estimated to fall to 85 lb (114 lb) as farmers switched over to other crops for better price realisation.

However, output in the southern region is slated to increase to 92 lb (76 lb), largely due to higher output expectation in Andhra Pradesh at 74 lb (58 lb). CAI has estimated mill consumption 240 lb (217 lb) and small scale unit demand of 22 lb (21 lb) while that of non-mill is estimated unchanged at 16 lb. The total demand is expected to touch 278 lb, excluding exports. (Source: The Hindu Businessline)