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On account of a lack of productivity in central India, the Cotton Association of India (CAI) on Wednesday revised its total domestic cotton projection downward for 2014-15 to 39.7 million bales (of 170 kg each). In January, CAI had estimated that cotton production this year would be 40.03 million bales.
As per CAI’s estimates, output for the previous year stood at 40.73 million bales.
Production from the central region, that spans the States of Madhya Pradesh, Maharashtra and Gujarat, is pegged at 21.93 million bales as against 23.58 million bales in 2013-14, the association stated in a release.
Total supply for the 2014-15 marketing year is expected to be 46.89 million bales with domestic consumption likely to be around 30.60 million bales which leaves a sizeable surplus of 16.29 million bales.
The price of raw cotton (kapas) has declined to a five-year low due to a supply glut and China, the largest importer of Indian cotton, scaling back its purchases by as much as 49 per cent over the first five months of the current season.
The State-run Cotton Corporation of India (CCI) has had to step in as a result to procure nearly 6.5 million bales at the minimum support price.
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