Cotton Association of India raises crop outlook by 5 lakh bales for 2017-118 season

The Cotton Association of India (CAI) has estimated Cotton crop for the ongoing 2017-18 season at 365 lakh bales of 170 kgs each, which is higher by 5 lakh bales from its previous estimate.

This estimated increase in production figures is mainly due to the realisation of higher yields more particularly in the state of Gujarat. Cotton production is higher by 3 lakh bales in Gujarat, 1 lakh bales in Karnataka, 50,000 bales in Andhra Pradesh & 25,000 bales each in the states of Madhya Pradesh & Tamil Nadu.

The total cotton supply up to May, 2018 has been projected at 378.50 lakh bales which consists of the opening stock of 30 lakh bales at the beginning of the season on 1st October, 2017, the arrival of 340 lakh bales up to 31st May, 2018 and imports which the Committee has estimated at 8.50 lakh bales up to May end.

Further, CAI has estimated cotton consumption for 8 months i.e. from October, 2017 to May, 2018 at 216 lakh bales at an average of 27 Lakh bales per month while the export shipment till 31 May 2018 has been estimated at 62 lakh bales.

The stock at the end of May, 2018 is estimated at 100.50 lakh bales including 58 lakh bales with textile mills while the remaining 42.50 lakh bales are estimated to be held with CCI (Cotton Corporation of India) and others (MNCs, Traders, Ginners, etc).

The projected yearly balance sheet for the season 2017-18 drawn by the CAI has estimated that total cotton supply till end of the season i.e. upto 30 September 2018 will be 410 lakh bales of 170 kgs each including the opening stock of 30 lakh bales at the beginning of the season.

The CAI has estimated domestic consumption for the season at 324 lakh bales while the exports for the season are estimated by the CAI at 70 lakh bales. The carry-over stock at the end of the 2017-18 crop year is estimated at 16 lakh bales.

Shekhar Ghosh is consulting editor, Indoasiancommodities.com. He has edited and written for publications like Business India, Business Standard, Business Today, Outlook and many other international publications. He can be reached at shekhar.ghosh@indoasiancommodities.in.

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