Commodity Online | February 08 2019
The Cotton Association of India (CAI) has estimated India's cotton crop for 2018-19 season at 330 lakh bales of 170 kgs. each which is lower by 5 lakh bales than its previous estimate of 335 lakh bales made during last month.
The CAI has reduced the crop estimate for Telangana by 2.50 lakh bales, Andhra Pradesh by 50,000 bales and Karnataka by 2 lakh bales. The main reason for lower crop is that in the Southern Zone farmers have uprooted their cotton plants due to moisture deficiency as a result of which there is no scope for 3rd and 4th pickings.
The total cotton supply projected by the CAI during the months of October 2018 to January 2019 is 198.80 lakh bales, which consists of the arrival of 170.32 lakh bales upto 31st January 2019, imports of 5.48 lakh bales upto 31st January 2019 and the opening stock at the beginning of the season estimated at 23 lakh bales.
Further, the CAI has estimated cotton consumption during the months of October 2018 to January 2019 at 105.34 lakh bales while the export shipment of cotton upto 31st January 2019 has been estimated at 24 lakh bales. Stock at the end of January 2019 is estimated by the CAI at 69.46 lakh bales including 39 lakh bales with textile mills and the remaining 30.46 lakh bales with CCI and others (MNCs, traders, ginners, etc.).
The association has also projected yearly Balance Sheet for the cotton season 2018-19 wherein total cotton supply till end of the cotton season i.e. upto 30th September 2019 has been estimated at 380 lakh bales of 170 kgs. each consisting of the opening stock of 23 lakh bales at the beginning of the season, cotton crop for the season estimated at 330 lakh bales and imports estimated by the CAI at 27 lakh bales, which are higher by 12 lakh bales compared to the previous year’s import estimated at 15 lakh bales.
The CAI has estimated domestic consumption of 316lakh bales which is lower by 4 lakh bales compared to the consumption figure estimated during the last month, while the CAI has estimated exports for the season 2018-19 at 50 lakh bales, which are lower by 19lakh bales compared to the export of 69 lakh bales estimated during the last year. The carry-over stock at the end of the 2018-19 season is estimated by the CAI at 14 lakh bales. (Source: commodityonline.com)