Cotton production in India during the current season is projected to reach 362.18 lakh bales, as per estimates of Committee on Cotton Production and Consumption.With an opening stock of 73.20 lakh bales and imports of 10.50 lakh bales, total availability this season is likely to be 445.88 lakh bales as against 485.66 bales the previous season. The demand from textile mills, including small-scale units, is estimated at 322 lakh bales, and exports are pegged at 45 lakh bales. Exports in the 2020-2021 season were almost 73 lakh bales.
Last season’s consumption by textile mills was lower than the estimate due to Covid. Hence, the opening stock for current season may be higher. Cotton position is expected to be comfortable this season. Textile mills may wait for bulk arrivals to pick up and not rush into purchases now. A candy of the Shankar-6 variety of cotton is priced at Rs.66, 200.
Out of India’s total cotton exports, 40 per cent goes to China. Similarly China has a 28 per cent share in India’s yarn exports. In cotton and cotton yarn, Vietnam is the third largest importer for India. India’s cotton exports may witness a temporary slowdown as the spread of coronavirus is likely to curtail demand for the fiber.