The Cotton Association of India (CAI) has envisaged a 13.62 percent hike in the cotton production of the country. CAI has stated that the country is expected to produce 354.50 lakh bales of cotton in the current year.
The producers have shifted their pulses to the growing area for cotton as the fibre which had traded well above its Minimum Support Price (MSP) throughout the last season. Perhaps increased cotton area and cheaper imports had led to industry experts fearing for a reversal of the price trend this season.
Focusing the present season the production would increase by 42.50 lakh bales than the 312 lakh bales as compared to last year’s production. ‘The increase in crop estimated for the 2019-20 season is on account of higher acreage under cotton than that of the previous season. Moreover, the CAI estimates yields to be higher as the country has received a good rainfall this year.
As per the reports, there is an extensive risk of damage to the crop in some zones due to flooding on account of excess rains. Having a tab on this, increase in the crop is restricted to 13.62%” the release said.
The CAI has estimated that the total cotton supply till the end of the cotton season ie till September 30, 2020 would 403 lakh bales which include 23.50 lakh bales of opening stock at the start of season and imports of 25 lakh bales.
Statistically, consumption of estimated by the CAI for the 2019-20 crop year is upto 30th September 2020 is 315 lakh bales while the CAI has estimated export of cotton for the season at 42 lakh bales. The taken forward stock predicted at the end of the season is nearly 46 lakh bales.