CAI maintains its cotton crop estimate for 2019-20 season at 354.50 lakh bales

Cotton Association of India (CAI) has released its November estimate of the cotton crop for the season 2019-20 beginning from 1st October 2019. CAI has retained its cotton crop estimate for 2019-20 at 354.50 lakh bales of 170 kg each i.e. at the same level as in the previous estimate. The CAI has reduced its cotton crop estimate for the Northern Zone by 2.50 lakh bales from its previous month’s estimate i.e. 63.00 lakh bales as compared to 65.50 lakh bales estimated earlier. The cotton crop estimate for the Central Zone has been lowered by 1 lakh bales i.e. at 195 lakh bales as against 196 lakh bales estimated during last month.

There is a reduction of 4.00 lakh bales in the crop estimate of Gujarat state, the highest producer of cotton in India, on account of damage reported to the crop due to heavy rains and pink bollworm infestation. This has resulted in uprooting of cotton plants by about 10 per cent farmers in Gujarat who wish to migrate to other competing crops.

However, there is an increase of 3.00 lakh bales in the cotton crop estimate for Maharashtra as migration of cotton crop from Maharashtra to other neighbouring states is not likely to happen this year due to the participation of CCI in the market. Also, there is an increase of 3.00 lakh bales in the crop estimated for Telangana and an increase of 50,000 bales in the crop estimated for Karnataka now compared to that estimated during last month.

The total cotton supply estimated by CAI during the months of October 2019 and November 2019 is 84.65 lakh bales of 170 kg each which consists of the arrivals of 56.15 lakh bales up to November 30, 2019, imports of 5.00 lakh bales up to November 30, 2019 and opening stock estimated by the CAI at 23.50 lakh bales at the beginning of the season.