CAI reduces May estimate of cotton crop
Cotton Association of India (CAI) has reduced its estimate for the cotton crop in the month of May. The estimate of the cotton crop for 2020-21 has been reduced by 0.4 million.
New
Delhi
Cotton Association of India (CAI) has
reduced its estimate for the cotton crop in the month of May 2021. The estimate
of the cotton crop for 2020-21 has been reduced by 0.4 million. The estimate of
the cotton crop was 36 million bales of 170 kilograms each in the previous
year. This estimate has been reduced by 0.4 million and has reached 35.6
million bales per 170 Kilograms in the season 2020-21 beginning from October
01, 2020. The association has disclosed the State-wise estimate of the cotton
crop and the balance sheet for the cotton season 2020-21 along with the
corresponding data for the 2019-20 crop year. The highlights of the deliberations
of the Statistics Committee of the CAI were attended by 26 members. It was held
on June 12, 2021. The Upcountry Cotton Trade Associations representing all
cotton growing States were also a part of the same.
The estimate for
the cotton crop for the Northern Zone was maintained by the CAI at the level of
the previous month’s estimate which was 6.5 million bales of 170 kilograms. The
cotton crop estimate for the Central Zone was reduced by 0.1 million bales
during the last month. For the state of Gujarat, there has been a reduction of
0.1 million bales in the crop estimate whereas the similar estimate for the
states of Maharashtra and Madhya Pradesh has been maintained at the same level
in the previous month. The cotton crop estimate for the Southern Zone has been
reduced by 0.3 million bales. The same has reached 9.1 million bales for 170
kilograms each.
Another cotton
estimate for the state of Telangana has been forecasted to be lower by 0.3
million bales, according to the press data provided by Telangana Cotton Millers
& Traders Welfare Association. The cotton crop estimates for the states of
Tamil Nadu, Andhra Pradesh, and Karnataka have been maintained at the same
levels as estimated previously. Also, there is no change in the cotton crop
estimate for Orissa state.
Overall, the
total cotton supply estimated by the CAI for the period starting from October
2020 to May 2021 is 47.3 million bales of 170 kilograms each. This value includes 34 million bales of 170
kilograms each till May 31, 2021, imports of 0.82 million bales for the same
kilograms for the same period, and also the opening stock calculated at the
beginning of the season on October 1, 2020, which was 12.5 million bales of 170
kilograms each.
Also, the CAI
has calculated an estimate of cotton consumption during the months of October
to May in the current year. This estimate is 22 million bales of 170 kilograms
each. The export shipment of cotton during the same period is estimated at 5.8
million bales per 170 kilograms each. The month end stock estimated by CAI was
19.5 million bales of 170 Kilograms each. This value includes 9 million bales
for 170 kilograms each with the textile mills and the remaining 10.5 million
bales for 170 kilograms bales with Maharashtra Federation, CCI, and others.
The CAI also
presented the yearly Balance Sheet in which it estimated the total cotton
supply till the end of the cotton season in September. The value came out to be
49.1 million bales per 170 kilograms each, out of which the opening stock was
12.5 million. 35.6 million was at the beginning of the cotton season, and 1
million was the value of exports per 170 kilograms for the same period. The
import estimates were lower by 0.55 million as compared to that of the previous
year’s import. It is also observed that the domestic consumption for the entire
crop year was higher by 1 million and has reached 32.5 million bales of 170
kilograms each. This is because of the high demand for cotton yarn even when
the work was disturbed due to the spread of the corona virus.
The CAI has also decided to increase the export
estimate for the season by 2.2 million bales of 170 kilograms each because of
the feedback received from the exporters. It is estimated that the carryover
stock at the end of the season is 9.4 million bales for 170 kilograms each. The
previous estimate of the same was 7 million and has been decided to increase it
to 72 million bales of 170 kilograms each.
Source – Press release of “CAI_Cotton”
Also Read:
