Cotton output to decline further to 315 lakh bales

The main reason for lowering the estimates of cotton is a scarcity of water in some states and uprooting of cotton plants by farmers in about 70-80 per cent area without waiting for third and fourth pickings.

Mumbai: The Cotton Association of India has again lowered the crop estimate by 6 lakh bales to 315 lakh bales for the 2018-19 cotton season in its April estimate, mainly due to low rainfalls in many key growing areas.

In the last cotton season, total output stood at 365 lakh bales, the association said on Tuesday. The cotton season runs from October to September, CAI said in a statement here.

The main reason for further lowering the estimates is a scarcity of water in some states and uprooting of cotton plants by farmers in about 70-80 per cent area without waiting for third and fourth pickings.

The crop estimate for Maharashtra is lower by 2 lakh bales compared to its previous estimate while for Madhya Pradesh, Telangana and Andhra Pradesh are lower by 1 lakh bales each.

Total cotton supply estimated by the CAI during the period from October 2018 to April 2019 is 314 lakh bales, 170 kgs, which consists of the arrival of 278.73 lakh bales up to April 30, imports of 7.27 lakh bales and the opening stock at the beginning of season on October 1, 2018, at 28 lakh bales.

Further, the CAI has estimated cotton consumption from October 2018 to April 2019 at 183.75 lakh bales.

While the export shipment of cotton estimated up to April 30, 2019 is 42.50 lakh bales, stock at the end of April is projected at 87.75 lakh bales including 40 lakh bales with textile mills and remaining 47.75 lakh bales with Cotton Corporation of India (CCI), MNCs and others.

The total cotton supply till end of the cotton season up to September 30, 2019 is estimated at 374 lakh bales each consisting of the opening stock of 28 lakh bales at the beginning of the cotton season, cotton crop for the season estimated at 315 lakh bales and imports estimated at 31 lakh bales.

Imports is projected to be higher by 16 lakh bales compared to last year that was estimated at 15 lakh bales.

Domestic consumption estimated by the CAI for the entire crop year is 315 lakh bales.

While CAI has projected exports for the season at 46 lakh bales, which are lower by 23 lakh bales compared to the previous year's cotton shipment estimate of 69 lakh bales.

The carry over stock estimated at the end of the season is estimated at 13 lakh bales.