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CAI reduces May estimate of cotton crop

Jun 16, 2021
CAI reduces May estimate of cotton crop

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"

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https://indiantextilejournal.com/latest-textile-industry-news/cai-estimates-cotton-crop-for-2019-20-season-at-354-50-lakh-bales