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India’s cotton crop for the current year 2020-21 is expected to be lower by about 4 lakh bales (each of 170 kg) at 356 lakh bales as against 360 lakh bales last year.
The Cotton Association of India (CAI) on Monday released its first estimate of cotton crop for the new season starting from October 1, 2020 and ending on September 30, 2021.
“The reduction in cotton crop for the season is on account of damage reported to the crop in some pockets due to the excess rains and pink bollworm infestation,” Atul Ganatra, President, CAI, informed in a statement.
The Crop Committee of CAI held its meeting on Friday last week, where it also projected India's cotton exports for the season at 60 lakh bales — about 10 lakh bales from the export estimate of 50 lakh bales in the previous crop year.
Cotton imports are likely at 14 lakh bales for the season, lower by 1.50 lakh bales from 15.50 lakh bales reported last year.
Consumption trends
India’s cotton prices are hovering in the range of ₹38,700-40,200 per candy (each of 356 kg of ginned cotton), which is considered favourable for the export markets, which are ruling higher at approx 71.21 cents per pound for New York cotton futures.
The CAI has estimated annual cotton consumption at 330 lakh bales, up about 80 lakh bales compared 250 lakh bales of the previous cotton season.
Relentless monsoon rains hit cotton crop in Maharashtra
The twelve-month cotton balance sheet for 2020-21 projects mill consumption at 288 lakh bales, which is about 70 lakh bales higher than the previous year. Also, consumption by the small-scale units is projected to be 24 lakh bales, up from 18 lakh bales reported last year.
So far, by the month of October 30, 2020, total cotton arrivals were recorded at 27.16 lakh bales.
The CAI has estimated the closing stock by the end of the cotton season at 87.50 lakh bales of 170 kgs, down by 20 lakh bales in the last year. However, last year was an exceptional year with closing stocks at record-high levels of 107.5 lakh bales.
CAI stated that it is a preliminary crop estimate and the Crop Committee will re-assess the crop as the season progresses.
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