The cotton crop for Southern zone has been reduced by 3.25 lakh bales i.e. 68.50 lakh bales compared to the estimate of 71.75 lakh bales made during last month.
By: FE Bureau |
July 12, 2019
The Cotton Association of India (CAI) has reduced its June estimate for the cotton crop for 2018-19 by 3 lakh bales from its previous estimate to 312 lakh bales.
The CAI has maintained its cotton crop estimate for the Northern Zone at the same level as in its previous month’s estimate i.e. 59 lakh bales while cotton crop for the Central Zone has been increased by 30,000 bales. There is an increase of 3.50 lakh bales for Gujarat compared to the cotton crop estimate of the CAI made during last month while the crop estimates for Maharashtra and Madhya Pradesh have been reduced by 2.88 lakh bales and 7 thousand bales, respectively.
The cotton crop for Southern zone has been reduced by 3.25 lakh bales i.e. 68.50 lakh bales compared to the estimate of 71.75 lakh bales made during last month. The cotton crop for Telangana and Andhra Pradesh are estimated lower by 2.50 lakh bales and 2 lakh bales, respectively compared to its previous month’s estimate whereas the cotton crop estimate for the Odisha is increased by 2 thousand bales compared to CAI’s previous month estimate.
The total cotton supply estimated by the CAI during the period from October 2018 to June 2019 is 347.84 lakh bales of 170 kg each which consists of the arrivals of 303.56 lakh bales up to 30th June 2019, imports of 11.28 lakh bales up to 30th June 2019 and the opening stock at the beginning of the season on 1st October 2018 at 33 lakh bales.
The CAI has estimated cotton consumption during the months of October 2018 to June 2019 at 243.12 lakh bales of 170 kg each while the export shipment of cotton estimated by the CAI up to 30th June 2019 is 44.10 lakh bales of 170 kg each.
Stock at the end of June 2019 is estimated by the CAI at 60.62 lakh bales including 33.10 lakh bales with textile mills and remaining 27.52 lakh bales with CCI, MNCs and others (MNCs, traders, ginners, among others).
The annual balance sheet projected by the CAI estimates total cotton supply till end of the cotton season i.e. up to September 30, 2019 at 376 lakh bales of 170 kg each consisting of the Opening Stock of 33 lakh bales at the beginning of the cotton season and imports estimated by the CAI at 31 lakh bales, which are higher by 16 lakh bales compared to the previous year’s import estimated at 15 lakh bales.
Domestic consumption estimated by the CAI for the entire crop year i.e. upto 30th September 2019 is 315 lakh bales while the CAI has estimated exports for the season at 46 lakh bales, which are lower by 23 lakh bales compared to the previous year’s cotton exports estimate of 69 lakh bales. The carry over stock estimated at the end of the season is estimated at 15 lakh bales.
Manish Daga, who is directly in touch with 30000 farmers in Maharashtra on a daily basis, submitted that the farmers were very disappointed with the income they received to cultivation of kapas in last year. Due to this, it is likely that they may divert to other crops. After considering Gujarat figures, CAI has changed Gujarat crop from 82.5 lakh bales to 86 lakh 170 kg bales and increased the cotton crop for Gujarat by 3.5 lakh bales.
Arun Sekhsaria raised a query regarding consumption figure of 311.50 lakh bales given by the Cotton Advisory Board (CAB). Sekhsaria stated that cotton consumption for Gujarat state has been considered at 13.50 lakh bales only in total consumption of 311.50 lakh bales whereas the actual consumption of Gujarat is more than 65 lakh bales. (Source: financialexpress.com)