CAI to review cotton production figures on Dec 10
The Cotton Association of India (CAI) has said that this year the estimated cotton production could be about 356 lakh bales. However, due to large scale crop damage in Maharashtra and Telangana, CAI will review the production figures on December 10, Atul Ganatra, President of CAI, told BusinessLine.
The Pink Bollworms (PBW) have extensively attacked the crop in Marathwada and Vidarbha regions of Maharashtra. It will also affect the quality of the raw cotton. Given the crop damage, the production numbers are not expected to rise further, he said.
Ganatra said that Maharashtra has suffered major crop damage but even bigger damage is in Telangana. The production estimates have been reduced to 45 lakh bales from 70 lakh bales. Numerous farmers in this southern State have already uprooted their plants due to the PBW attacks. In Maharashtra also, some farmers have done the same.
He said that from the last year the carry forward stock is of about 100 lakh bales therefore there is no rally in market. The prices are not rising. On the other hand, exports show a growing trend with healthy demand from Bangladesh, China, Indonesia and Vietnam.
The Crop Committee of the CAI has retained its consumption estimate for the current crop year at 250 lakh bales (of 170 kg each). The consumption for the season is less by 61.50 lakh bales due to the disruptions caused by the lockdown and the shortage of labour, the CAI said in a media statement.
The closing stock, as on September 30, is estimated by the Crop Committee at 107.50 lakh bales.