The association has attributed the reduction in crop estimates to the drop in production in states including Punjab, Haryana, Rajasthan, Gujarat, Telangana, Odisha and Karnataka.
The Cotton Association of India (CAI) has reduced its crop estimates for the 2021-22 season by 12 lakh bales to 348.14 lakh bales of 170 kg each. The cotton body had previously estimated the crop for the season at 360.13 lakh bales. The association has attributed the reduction in crop estimates to the drop in production in states including Punjab, Haryana, Rajasthan, Gujarat, Telangana, Odisha and Karnataka.
The highest drop in production has been reported from Gujarat by around 5 lakh bales, while Telangana and Karnataka have reported drop of nearly 2 lakh bales in total production, the association said in a statement.The association has estimated the total cotton supply for the months of October 2021 to December 2021 at 218.52 lakh bales, which consists of the arrivals of 140.52 lakh bales and imports of 3 lakh bales.
The opening stock estimated by the CAI is at 75 lakh bales at the beginning of the season. Further, the CAI has estimated cotton consumption for the months of October 2021 to December 2021 at 86.25 lakh bales, while the export shipments up to December 31 have been estimated at 18.50 lakh bales.
Also, stock at the end of December 2021 is estimated at 113.77 lakh bales, including 65 lakh bales with textile mills and the remaining 48.77 lakh bales with the CCI, Maharashtra Federation and others (MNCs, traders, ginners, MCX etc. including the cotton sold but not delivered).
The CAI Crop Committee has estimated the total cotton supply till end of the cotton season 2021-22 i.e. upto September 30, 2022 at 438.13 lakh bales. Export estimates for the season have now been retained at 48 lakh bales. The export estimate for the previous cotton season 2020-21 was of 78 lakh bales.
Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.