CAI increases the production estimate to 360 lakh bales on higher output in North India
Our Bureau | Ahmedabad | April 15, 2021
Over 90 per cent of the cotton crop for the current season (October 2020- September 2021 has arrived in various markets across the country as on March 31, according to the Cotton Association of India (CAI). In a press release, the cotton trade body said that against the projected production of 360 lakh bales (170 kg each), 326.76 lakh bales had already arrived in various parts by March-end.
Total cotton supplies during in the first six months of the season stood at 459.26 lakh bales. Besides the market arrivals, the supplies included 7.50 lakh bales of imports and a record opening stock of 125 lakh bales at the beginning of the season.
On the consumption front, CAI has estimated that a total 165 lakh bales of cotton has been utilised by the end-users. Overall, the cotton trade body has retained its projected consumption of 330 lakh bales for the season of 2020-21 (October to September).
Atul Ganatra, President of CAI, said that there is an increase of 80 lakh bales in the cotton consumption estimate compared with the previous year’s offtake estimate of 250 lakh bales. "The consumption is estimated to reach its normal level this year after the disruptions and labour shortage caused by the lockdown imposed in the country to arrest the spread of Ccovid -19 pandemic," he said.
After its latest review for the crop estimate for the month of March, CAI has hiked the production estimate to 360 lakh bales from previously estimated 358.5 lakh bales for the season. The upward revision of 1,50,000 bales is attributed to a brightened crop prospects in the Northern part of the country, i.e., 50,000 bales each in Haryana, Upper Rajasthan and Lower Rajasthan.
CAI has retained its cotton export projections of 60 lakh bales for the season, but it has noted that cotton imports will be lower by about one lakh bales at 11 lakh bales against earlier estimates of 12 lakh bales. As for the stock position, spinning mills are estimated to have about 95 lakh bales in their warehouses as on March 31, with an average of 107 days’ cotton stock.
The Cotton Corporation of India (CCI), Maharashtra Federation, Multinational companies, ginners, traders and MCX are estimated to have a total stock of about 156.26 lakh bales of stock as on March 31. CAI has projected to close the current cotton year October-September (2020-21) with a closing stock of about 106 lakh bales. (Source: The Hindu Businessline)