The Cotton Association of India (CAI) has projected cotton crop for 2016-17 season at 341 lakh bales of 170 kg each. This would be 1 per cent higher than previous year. The projected balance sheet drawn by the CAI has estimated total cotton supply for the cotton season 2016-17 at 404 lakh bales while the domestic consumption is estimated at 290 lakh bales thus leaving an available surplus of 114 lakh bales.
Nayan Mirani, President, CAI says, cotton arrivals during the ongoing 2016-17 crop year are estimated lower than the same period last year due to holding back of seed cotton by farmers mainly on liquidity issues. The CAI has released its December estimate of the cotton crop for the 2016-17 season beginning from October 1. This should, however, rectify in a few days once arrivals improve, he said.
Prices of Kapas touched Rs 5,700 per quintal last week. Mirani says, the crop by itself is higher than the previous year at 341 lakh bales. Since the arrivals have not yet picked up, farmers are in a position to demand higher rates. Once arrivals improve, prices should decline. The current production estimate of CAI is slightly higher that the last year’s estimate of 337 lakh bales.
Mirani, who took over as the new president of the association, said he would strive to address trader issues and work towards uniform trade practices across the country. According to industry experts, the methods of trading have changed over the years especially after trade has moved upcountry in hinterlands from metros.