India is expected to produce 345 lakh bales (of 170 kg each) of cotton in the 2015/16 season that started on October 1, down by 37.75 lakh bales from an earlier estimate, the Cotton Association of India (CAI) said.
It said in a statement that spot markets across the country registered an arrival of 245 lakh bales – down 11.3 per cent compared to the same period a year ago, indicating a lower crop, during the October-Febraury period.
“This reduction in the arrivals of cotton is an indication of a lower crop. If the trend of arrival does not improve in the coming months, the estimate of cotton crop for the 2015-16 cotton season will have to be lowered further,” the statement said.
The U.S Department of Agriculture (USDA) earlier said it estimates India’s 2015/16 cotton production at 26.8 million bales (480-pound bales), down 3.6 percent or 1 million bales from last month and down 9.2 percent from last year.
Compared to last year, total cotton availability is down by about 16 lakh bales, but the total demand is expected to be lesser by 71 lakh bales, the CAI said.
With carryover stock of about 73.60 lakh bales and imports of about 14 lakh bales, the total availability is estimated at around 432.60 lakh bales.
CAI has pegged total consumption at around 304 lakh bales, of which 270 lakh bales is estimated to be consumed by mills, 24 lakh bales by small scale units, while non-mill consumption is pegged at 10 lakh bales.