Due to higher performance in North India, the CAI has increased the production estimate to 360 lakh bales.
According to the Cotton Association of India, over 90% of the cotton crop for the current season (October 2020-September 2021) has arrived in various markets across the country as of March 31. (CAI).
According to a press release from the cotton trade group, 326.76 lakh bales (170 kg each) had already arrived in various parts of the country by the end of March, compared to a forecast output of 360 lakh bales (170 kg each).
Cotton supplies totaled 459.26 lakh bales in the first six months of the season.
Aside from market deliveries, supplies included imports totaling 7.50 lakh bales and a record opening stock of 125 lakh bales at the start of the season.
Overall, the cotton trade group has held its forecasted consumption of 330 lakh bales for the 2020-21 season (October to September).
According to CAI President Atul Ganatra, the cotton consumption forecast has increased by 80 lakh bales from the previous year’s offtake estimate of 250 lakh bales. “After the disturbances and labour shortages caused by the country’s lockdown to stop the spread of the Ccovid -19 pandemic, consumption is expected to return to normal this year,” he said.
CAI has increased the production forecast for the season to 360 lakh bales from the previously reported 358.5 lakh bales following its latest assessment of the crop estimate for the month of March.
The 1,50,000-bale increase is due to improved crop prospects in the northern part of the country, with 50,000 bales in Haryana, Upper Rajasthan, and Lower Rajasthan each.
CAI has kept its forecast for cotton exports at 60 lakh bales for the season, but has noted that cotton imports would be around one lakh bales lower at 11 lakh bales, compared to earlier estimates of 12 lakh bales.
As of March 31, spinning mills were reported to have around 95 lakh bales in their warehouses, with a cotton stock of 107 days on average.
As of March 31, the Cotton Corporation of India (CCI), Maharashtra Federation, Multinational corporations, ginners, dealers, and the MCX were estimated to have a total stock of 156.26 lakh bales.
CAI forecasts a closing stock of around 106 lakh bales for the current cotton year, which runs from October to September (2020-21).