Cotton Association of India (CAI) has increased its cotton crop estimate for 2019-20 season beginning October 1, by 19 lakh bales to 354.50 lakh bales of 170 kg each compared to its previous estimate of 335.50 lakh bales made during the last month. The latest estimate is same as the quantity predicted by the CAI in its February and March estimates this year.
The total cotton supply estimated by the CAI during the months of October 2019 to July 2020 is 392.40 lakh bales, which consists of the arrival of 345.40 lakh bales up to July 31, 2020, imports of 15 lakh bales up to July 31, 2020, and the opening stock estimated by the CAI at 32 lakh bales at the beginning of the season on October 1, 2019.
Further, the CAI has estimated cotton consumption during the months of October 2019 to July 2020 at 206 lakh bales, while the export shipments of cotton up to July 31, 2020 are estimated at 43 lakh bales. Stock at the end of July 2020 is estimated at 143.40 lakh bales, including 15 lakh bales with textile mills and the remaining 128.40 lakh bales with CCI/Maharashtra Federation and others (MNCs, MCX, traders, ginners, etc.).
The Crop Committee of the CAI has estimated total cotton supply till end of the season i.e. up to September 30, 2020 at 402.50 lakh bales, as against 382.50 lakh bales estimated in the previous month. Total cotton supply estimated now comprises the opening stock of 32 lakh bales at the beginning of the season on October 1, 2019, crop for the season estimated now at 354.50 lakh bales and imports estimated by the CAI at 16 lakh bales. The imports estimated for the 2019-20 crop year are just half of the previous year’s import estimate of 32 lakh bales.
Domestic consumption now estimated by the CAI for the entire crop year i.e. up to September 30, 2020 is 250 lakh bales. There is a reduction of 30 lakh bales in the consumption estimate made now compared to that estimated earlier due to the lower consumption of cotton on account of disruptions caused by COVID-19 pandemic and the labour shortage resulting therefrom.
The CAI has estimated export for the season at 50 lakh bales, which is higher by 8 lakh bales than that estimated for the previous season due to the favourable conditions now existing for export of cotton from India. The carry-over stock at the end of the season i.e. on September 30, 2020 is estimated now at 102.50 lakh bales.
Fibre2Fashion News Desk (RKS)