CAI lowers cotton estimate for 2020-21 to 354.5 L bales

Mumbai

Cotton Association of India (CAI)
has reduced its July estimate of the cotton crop for 2020-21 (beginning from October
1, 2020) by 1.50 lakh bales to 354.50 lakh bales of 170 kgs each (equivalent to
376.66 lakh running bales of 160 kgs each) from its previous estimate of 356
lakh bales of 170 kgs each (equivalent to 378.25 lakh running bales of 160 kgs
each). This was announced after a virtual meeting of the Statistics Committee
of the CAI which was held on August 11, 2021 and was attended by 25 members
including upcountry cotton trade associations representing all cotton growing states.

The CAI has maintained its cotton
crop estimate for the Northern Zone at the same level as in its previous
month’s estimate i.e. at 65.50 lakh bales of 170 kgs each (equivalent to 69.59
lakh running bales of 160 kgs each). The cotton crop estimate for the Central
Zone has been reduced by 0.50 lakh bales to 193.50 lakh bales of 170 kgs each
(equivalent to 205.59 lakh running bales of 160 kgs each) from 194 lakh bales
of 170 kgs each (equivalent to 206.13 lakh running bales of 160 kgs each)
estimated during the last month.

There is a reduction of 2.50 lakh
bales in the crop estimate for Gujarat state while the crop estimates of
Maharashtra & Madhya Pradesh have been increased by 1.50 lakh bales and
0.50 lakh bales respectively compared to the estimates of these states made in
the previous month. 

The cotton crop estimate for
Southern Zone has been reduced by one lakh bales to 90.50 lakh bales of 170 kgs
each (i.e. 96.16 lakh running bales of 160 kgs each) compared to the previous
estimate of 91.50 lakh bales of 170 kgs each (i.e. 97.22 lakh running bales of
160 kgs each) made during the last month. The cotton crop for Telangana is
estimated lower by 1.00 lakh bales whereas the cotton crop estimates for the
states of Andhra Pradesh, Karnataka & Tamil Nadu have been maintained at
the same levels as estimated previously. Also, there is no change in the cotton
crop estimate for Orissa.

The total cotton supply estimated
by the CAI during the period from October 2020 to July 2021 is 482.61 lakh
bales of 170 kgs each (equivalent to 512.77 lakh running bales of 160 kgs
each). This consists of the arrivals of 348.61 lakh bales of 170 kgs each upto July
31, 2021 (equivalent to 370.40 lakh running bales of 160 kgs each), imports of
9.00 lakh bales of 170 kgs each (equivalent to 9.56 lakh running bales of 160
kgs each) upto July 31, 2021 and the opening stock at the beginning of the
season on October 1, 2020 at 125 lakh bales of 170 kgs each (equivalent to
132.81 lakh running bales of 160 kgs each).

Further, the CAI has estimated
cotton consumption during the months of October 2020 to July 2021 at 275 lakh
bales of 170 kgs each (equivalent to 292.19 lakh running bales of 160 kgs each)
while the export shipment of cotton upto July 31, 2021 is estimated at 70 lakh
bales of 170 kgs each (equivalent to 74.38 lakh running bales of 160 kgs each).

Stock at the end of July 2021 is
estimated by the CAI at 137.61 lakh bales of 170 kgs each (equivalent to 146.21
lakh running bales of 160 kgs each) including 80.00 lakh bales of 170 kgs each
(i.e. 85 lakh running bales of 160 kgs each) with textile mills and remaining 57.61
lakh bales of 170 kgs each (equivalent to 61.21 lakh running bales of 160 kgs
each) with CCI, Maharashtra Federation and others (MNCs, Traders, Ginners, etc).

The yearly balance sheet projected
by the CAI estimates total cotton supply till end of the cotton season i.e. upto
September 30, 2021 at 489.50 lakh bales of 170 kgs each (equivalent to 520.09 lakh
running bales of 160 kgs each) consisting of the Opening Stock of 125 lakh
bales of 170 kgs each (i.e. 132.81 lakh running bales of 160 kgs each) at the
beginning of the cotton season, cotton crop for the season at 354.50 lakh bales
of 170 kgs each (equivalent to 376.66 lakh running bales of 160 kgs each) and
imports estimated by the CAI at 10 lakh bales of 170 kgs each (equivalent to
10.63 lakh running bales of 160 kgs each), which are lower by 5.50 lakh bales
of 170 kgs each (equivalent to 5.84 lakh running bales of 160 kgs each) from
the previous year’s import estimated at 15.50 lakh bales of 170 kgs each
(equivalent to 16.47 lakh running bales of 160 kgs each).

Domestic consumption for the
entire crop year i.e. upto September 30, 2021 is now estimated higher by 5 lakh
bales to 330 lakh bales of 170 kgs each (equivalent to 350.63 lakh running
bales of 160 kgs. each) considering the brisk demand for cotton yarn despite
disruptions caused by lockdown to arrest spread of the second wave of COVID-19.

The CAI has also increased the
exports estimate for the season from its previous estimate of 72 lakh bales of
170 kgs each (equivalent to 76.50 lakh running bales of 160 kgs each) to 77
lakh bales of 170 kgs each (equivalent to 81.81 lakh running bales of 160 kgs
each) based on the feedback received from exporter members.

This export estimate is higher by
27 lakh bales from the previous year’s cotton exports estimate of 50 lakh bales
of 170 kgs each (equivalent to 53.13 lakh running bales of 160 kgs each). The
carryover stock at the end of the season i.e. on September 30, 2021 is now
estimated at 82.50 lakh bales of 170 kgs each (equivalent to 87.66 lakh running
bales of 160 kgs each).

The Crop Committee of the Cotton
Association of India (CAI) held its meeting on 11^th August 2021,
which was attended by in all 25 members representing all cotton producing
states and stakeholders. The Committee arrived at the July estimate of the
cotton crop for the 2020-21 crop year and drawn the estimated cotton balance
sheet based on the data available from various trade sources, upcountry
associations and other stakeholders.

The following are the highlights
of the deliberations held at the meeting of the Statistics Committee of Cotton Association
of India on August 11, 2021:

1. Consumption: The CAI
has increased its consumption estimate for the current crop year by 5 lakh
bales to 330 lakh bales of 170 kgs each (equivalent to 350.63 lakh running
bales of 160 kgs each) from its previous estimate of 325 lakh bales of 170 kgs
each (equivalent to 345.31 lakh running bales of 160 kgs each). The Committee
has made this revision considering the brisk demand for cotton yarn despite
disruptions caused on account of the lockdown implemented to arrest the second
wave of COVID-19 pandemic in the country. The consumption now estimated
for the current crop year is higher by 80 lakh bales compared to the previous
year’s consumption estimate of 250 lakh bales of 170 kgs each (equivalent to
265.63 lakh running bales of 160 kgs each). Upto July 31, 2021, the consumption
is estimated at 275 lakh bales of 170 kgs each (equivalent to 292.19 lakh
running bales of 160 kgs each).

2. Production: The CAI
has reduced its production estimate for the season 2020-21 to 354.50 lakh bales
of 170 kgs each (equivalent to 376.66 lakh running bales of 160 kgs each) from
its previous estimate of 356 lakh bales of 170 kgs each (equivalent to 378.25
lakh running bales of 160 kgs each) made during the last month. The Committee
members will have a close watch on the cotton arrivals in the months of August
and September and if any addition or reduction is required to be made in the
production estimate, the same will be made in the CAI reports.

3. Imports: The
estimate of cotton imports into India has been retained at the same level of 10
lakh bales of 170 kgs each (equivalent to 10.63 lakh running bales of 160 kgs
each) as estimated during the last month. The cotton import estimate made now
is lower by 5.50 lakh bales from that estimated for the 2019-20 crop year. Upto
July 31, 2021, about 9.00 lakh bales of 170 kgs each (equivalent to 9.56 lakh
running bales of 160 kgs each) are estimated to have been arrived the Indian
Ports.

4. Exports: The
estimate of cotton exports for the 2020-21 crop year has been increased by 5
lakh bales to 77 lakh bales of 170 kgs each (equivalent to 81.81 lakh running
bales of 160 kgs each) based on the input received from exporter-members. Upto July
31, 2021, about 70 lakh bales of 170 kgs each (equivalent to 74.38 lakh running
bales of 160 kgs each) are estimated to have been shipped.

5. Arrivals: Indian
cotton arrivals during the months of October 2020 to July 2021 are estimated at
348.61 lakh bales of 170 kgs each (equivalent to 370.40 lakh running bales of
160 kgs each).

6. Stock as on July 31, 2021: The cotton
stocks held by mills in their godowns on July 31, 2021 are estimated at 80 lakh
bales of 170 kgs each (equivalent to 85 lakh running bales of 160 kgs each). The
mills have on an average 87 days’ cotton stock in their godowns. The CCI,
Maharashtra Federation, MNCs, Ginners, Traders, MCX, etc. are estimated to have
a total stock of about 57.61 lakh bales of 170 kgs each (equivalent to 61.21
lakh running bales of 160 kgs each) as on July 31, 2021. Thus, the total stock
held by spinning mills and stockists including the stock of cotton sold but not
delivered on July 31, 2021 is estimated at 137.61 lakh bales of 170 kgs each
(equivalent to 146.21 lakh running bales of 160 kgs each).

Closing stock September 30, 2021

Closing stock as on September 30,
2021 is estimated by the Committee at 82.50 lakh bales of 170 kgs each
(equivalent to 87.66 lakh running bales of 160 kgs each).