The Hindu Business Line : Cotton trade sees crop at 240 lakh bales

COTTON crop for 2005-06 is estimated at 240 lakh bales (170 kg), marginally below 243 lakh bales of last year. This season's output came from 89.25 lakh hectares giving a yield of 457 kg/ha.

As of mid-January, arrivals aggregated 120 lakh bales (50 per cent of crop). This was announced at the All-India Cotton Trade Conference held at Surendranagar (Gujarat) on Sunday.

Presenting the cotton balance sheet for the year, a senior representative of East India Cotton Association (EICA) said total supplies for the year would be higher than last year at 317 lakh bales including an opening stock of 72 lakh bales and imports projected at 5 lakh bales. Imports are likely to be confined to extra-long staple cotton.

In 2004-05, total supplies were 276 lakh bales including opening stock of 21 lakh bales and imports of 12 lakh bales.

On the demand side, total consumption is estimated at 238 lakh bales (204 lakh bales last year) including mill consumption of 180 lakh bales (163 lakh bales), consumption by SSI units 18 lakh bales (17 lakh bales) and non-mill consumption of 15 lakh bales (14 lakh bales).

Exports are projected to show a healthy increase to 25 lakh bales versus 10 lakh bales of last year. Close to two-thirds of export shipments have already been made, it was stated. The year would end with a record carry-over of 79 lakh bales.

Organised jointly by EICA and Surendranagar Cotton, Oil and Oilseed Association, the conference discussed global and domestic market conditions, export opportunities and price outlook for the coming months.