Cotton Association of India 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 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. CAI informed that over 90 per cent of the cotton crop for current season, spanning October 2020- September 2021 has arrived in various markets across the country as on March 31.
As per the trade body, against the projected 360 lakh bales for the entire season, 326.76 lakh bales had already arrived in various parts by March-end.
In all, the market received 459.26 bales of cotton in the first six months of the season. This included 7.50 lakh bales of imports and a record opening stock of 125 lakh bales at the beginning of the season.
Of this, 165 lakh bales have been utilized by the end-users, says CAI. The trade body expects 330 lakh bales of cotton to be consumed during October 2020-September 21.
Atul Ganatra, President, CAI, says, cotton consumption is estimated to increase by 80 lakh bales 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 COVID -19 pandemic, he adds.
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 expects to close the current cotton year with a closing stock of about 106 lakh bales.