The Cotton Association of India (CAI) expects India’s cotton exports to decline by around 10 per cent to 54 lakh bales from an earlier projection of 60 lakh bales. CAI had earlier projected cotton exports to rise by 20 per cent this year from 50 lakh bales exported last year. The price of Indian cotton has increased from Rs 38,000 per candy of 356 kg each to Rs 41,500, while the international prices have declined by about 4 per cent.

The CAI retained its import projections at 14 lakh bales for the year. The cotton stock held by mills in their godowns, as on November 30, 2020, is estimated at 40 lakh bales, which is equivalent to an average 43-day cotton stock. Various agencies like CCI, Maharashtra Federation, MNCs, Ginners and MCX are estimated to have stock of about 91.57 lakh bales as on 30 November. Thus, total stock held by spinning mills and stockists as on November 30 is estimated at 131.57 lakh bales.

The CAI has retained the overall crop size at 356 lakh bales for the year 2020-21. The overall cotton consumption is estimated at 330 lakh bales for the year of which about 57.5 lakh bales has been consumed during the first 2 months of the year.