low strength . Cotton market arrivals down 15% till Nov-end as farmers hold back produce

Cotton growers are seen holding back their produce in anticipation of higher prices. This is reflected in the market arrivals of cotton, which are down by about 15 per cent till November end over the same period last year.

In its latest estimates, the Cotton Association of India (CAI), the apex trade body, has pegged the market arrivals till November end at 77.76 lakh bales of 170 kgs each as compared to the same period last year’s 91.57 lakh bales.

Atul S Ganatra, President, CAI told

BusinessLine that apart from farmers holding back their produce expecting higher prices, the unseasonal rains during October and November that impacted the pickings has also affected the market arrivals.

For the cotton marketing season 2021-22 starting October 1, CAI has pegged the crop size at 360.13 lakh bales, higher than the previous year’s 353 lakh bales. CAI sees domestic demand flat at last year’s level of 335 lakh bales.

In its monthly balance sheet for November 2021, the CAI has estimated total supply at 154.76 lakh bales of 170 kgs, lower than the same period last year’s 201.07 lakh bales.

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The supply as of November-end this year consisted of the market arrivals of 77.76 lakh bales (91.57 lakh bales in the same period last year), imports of 2 lakh bales (2 lakh bales) and opening stocks as of October 1, 2021 at 75 lakh bales (107 lakh bales as of October 1, 2020).

CAI said the consumption during October-November this year stood lower at 55.83 lakh bales (57.50 lakh bales) while exports during the period were also down at 7 lakh bales (12 lakh bales). The November end stocks estimated by CAI stood lower at 91.93 lakh bales (131.57 lakh bales). Stocks held by mills in their godown is estimated at 56 lakh bales (40 lakh bales). On average, mills hold 60-day stocks in their godowns, CAI said.

The Cotton Corporation of India, Maharashtra Federation, multinational companies, ginners, traders and exchanges are estimated to have a total stock of about 35.93 lakh bales (97.29 lakh bales) as of November end.

Total stock held by spinning mills and stockists including the stock of cotton sold but not lifted as of November 30 works out to 91.93 lakh bales (131.57 lakh bales), CAI said.