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    Cotton Association of India cuts 2019-20 cotton production estimate by 7%

    Synopsis

    The CAI has reduced its cotton crop estimate for 2019-20 to 330 lakh bales of 170 kgs. each as against 354.50 lakh bales estimated by it earlier. The cotton crop finalised by the CAI for the last year i.e. for the crop year 2018-19 was 312.00 lakh bales of 170 kgs. each.

    Agencies

    There is a reduction of 51 lakh bales in the consumption estimate now made compared to that estimated earlier due to the lower consumption of cotton on account of disruptions caused by the COVID-19.

    PUNE: Cotton Association of India (CAI) has released its April estimate of the cotton crop for the season 2019-20 beginning from 1st October 2019. The CAI has reduced its cotton crop estimate for 2019-20 to 330 lakh bales of 170 kgs. each as against 354.50 lakh bales estimated by it earlier. The cotton crop finalised by the CAI for the last year i.e. for the crop year 2018-19 was 312.00 lakh bales of 170 kgs. each.

    The total cotton supply estimated by the CAI during the months of October 2019 to April 2020 is 329.59 lakh bales of 170 kgs. each which consists of the arrivals of 285.09 lakh bales upto 30th April 2020, imports of 12.50 lakh bales upto 30th April 2020 and the opening stock estimated by the CAI at 32.00 lakh bales at the beginning of the season.

    Further, the CAI has estimated cotton consumption during the months of October 2019 to April 2020 at 160.00 lakh bales of 170 kgs. each while the export shipment of cotton estimated by the CAI upto 30th April 2020 is 32.50 lakh bales of 170 kgs. each. Stock at the end of April 2020 is estimated by the CAI at 137.09 lakh bales including 25.00 lakh bales with textile mills and the remaining 112.09 lakh bales with CCI and others (MNCs, Traders, Ginners, etc.).

    The Crop Committee of the Association has estimated total cotton supply till end of the cotton season i.e. upto 30th September 2020 at 377.00 lakh bales of 170 kgs. each (as against 411.50 lakh bales estimated in the previous month).

    Total cotton supply consists of the Opening Stock of 32.00 lakh bales at the beginning of the cotton season on 1st October 2019, crop for the season estimated at 330.00 lakh bales and imports estimated by the CAI at 15.00 lakh bales, which are lower by 17.00 lakh bales compared to the previous year’s estimate of 32.00 lakh bales. The estimate of the cotton imports into India is now estimated lower by 10 lakh bales (i.e. 15 lakh bales now estimated to be imported into India during the current crop year as against 25 lakh bales estimated earlier) as due to about the 10% depreciation in value of Indian Rupee, imported cotton has become costly as also as Indian cotton is now very cheap and easily available in quantity.

    Domestic consumption now estimated by the CAI for the entire crop year i.e. upto 30th September 2020 is 280.00 lakh bales (as against 331 lakh bales estimated by the CAI based on the estimate of Cotton Advisory Board made in their meeting held on 28th November 2019. There is a reduction of 51 lakh bales in the consumption estimate now made compared to that estimated earlier due to the lower consumption of cotton on account of disruptions caused by the COVID-19 Pandemic in the country. The CAI has estimated exports for the season at 47 lakh bales as against 42 lakh bales estimated earlier. This export estimate is higher by 5 lakh bales than estimated in the previous year looking to the favourable conditions now existing for export of cotton from India. The carryover stock estimated at the end of the season is 50 lakh bales as against 38.50 lakh bales estimated earlier.

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