Cotton Association (CAI) has released its May estimate of the cotton crop for the season 2020-21 beginning from 1^{st} October 2020. CAI has reduced its May estimate of the cotton crop for 2020-21 by 4 lakh bales to 356 lakh bales of 170 kgs. each (equivalent to 378.25 lakh running bales of 160 kgs. each) from its previous estimate of 360 lakh bales of 170 kgs. each (equivalent to 382.50 lakh running bales of 160 kgs. each) .

A statement containing the State-wise estimate of the cotton crop and the balance sheet for the cotton season 2020-21 with the corresponding data for 2019-20 crop year are enclosed. Also given below are the highlights of the deliberations of the virtual meeting of the Statistics Committee of the CAI which was held on 12^{th} June 2021 and was attended by 26 members including Upcountry Cotton Trade Associations representing all cotton growing States.

The CAI has maintained its cotton crop estimate for the Northern Zone at the same level as in its previous month’s estimate i.e. at 65.50 lakh bales of 170 kgs. each (equivalent to 69.59 lakh running bales of 160 kgs. each).

The cotton crop estimate for the Central Zone has been reduced by 1.00 lakh bales to 194 lakh bales of 170 kgs. each (equivalent to 206.13 lakh running bales of 160 kgs. each) from 195 lakh bales of 170 kgs. each (equivalent to 207.19 lakh running bales of 160 kgs. each) estimated during the last month.

There is a reduction of 1.00 lakh bales in the crop estimate for Gujarat state while the crop estimates of Maharashtra & Madhya Pradesh have been maintained at the same level as in the previous month.

The cotton crop estimate for Southern Zone has been reduced by 3.00 lakh bales to 91.50 lakh bales of 170 kgs. each (i.e. 97.22 lakh running bales of 160 kgs. each) compared to the previous estimate of 94.50 lakh bales of 170 kgs. each (i.e. 100.41 lakh running bales of 160 kgs. each) made during the last month.

The cotton crop for Telangana is estimated lower by 3.00 lakh bales based on the pressing data provided by Telangana Cotton Millers & Traders Welfare Association whereas the cotton crop estimates for the states of Andhra Pradesh, Karnataka & Tamil Nadu have been maintained at the same levels as estimated previously. Also there is no change in the cotton crop estimate for Orissa.

The total cotton supply estimated by the CAI during the period from October 2020 to May 2021 is 473.44 lakh bales of 170 kgs. each (equivalent to 503.03 lakh running bales of 160 kgs. each).

This consists of the arrivals of 340.19 lakh bales of 170 kgs. each upto 31^{st} May 2021 (equivalent to 361.45 lakh running bales of 160 kgs. each), imports of 8.25 lakh bales of 170 kgs. each (equivalent to 8.77 lakh running bales of 160 kgs .each) upto 31^{st} May 2021 and the opening stock at the beginning of the season on 1^{st} October 2020 at 125 lakh bales of 170 kgs. each (equivalent to 132.81 lakh running bales of 160 kgs. each).

Further, the CAI has estimated cotton consumption during the months of October 2020 to May 2021 at 220 lakh bales of 170 kgs. each (equivalent to 233.75 lakh running bales of 160 kgs. each) while the export shipment of cotton upto 31^{st} May 2021 is estimated at 58.00 lakh bales of 170 kgs. each (equivalent to 61.63 lakh running bales of 160 kgs. each).

Stock at the end of May 2021 is estimated by the CAI at 195.44 lakh bales of 170 kgs. each (equivalent to 207.66 lakh running bales of 160 kgs. each) including 90.00 lakh bales of 170 kgs. each (i.e. 95.63 lakh running bales of 160 kgs. each) with textile mills and remaining 105.44 lakh bales of 170 kgs. each (equivalent to 112.03 lakh running balesof 160 kgs. each) with CCI, Maharashtra Federation and others (MNCs, Traders, Ginners, etc.).

The yearly Balance Sheet projected by the CAI estimates total cotton supply till end of the cotton season i.e. upto 30^{th} September 2021 at 491 lakh bales of 170 kgs. each (equivalent to 521.69 running bales of 160 kgs. each) consisting of the Opening Stock of 125 lakh bales of 170 kgs. each (i.e. 132.81 lakh running bales of 160 kgs. each) at the beginning of the cotton season, cotton crop for the season at 356 lakh bales of 170 kgs. each (equivalent to 378.25 lakh running bales of 160 kgs. each) and imports estimated by the CAI at 10 lakh bales of 170 kgs. each (equivalent to 10.63 lakh running bales of 160 kgs. each), which are lower by 5.50 lakh bales of 170 kgs. (equivalent to 5.84 lakh running bales of 160 kgs.each) from the previous year’s import estimated at 15.50 lakh bales of 170 kgs. each (equivalent to 16.47 lakh running bales of 160 kgs. each).

Domestic consumption for the entire crop year i.e. upto 30^{th} September 2021 is now estimated higher by 10 lakh bales to 325 lakh bales of 170 kgs. each (equivalent to 345.31 lakh running bales of 160 kgs. each) considering the brisk demand for cotton yarn despite disruptions caused by lockdown to arrest spread of the second wave of COVID-19.

The CAI has also increased the exports estimate for the season from its previous estimate of 70 lakh bales of 170 kgs. each (equivalent to 74.38 lakh running bales of 160 kgs. each) to 72 lakh bales of 170 kgs. each (equivalent to 76.50 lakh running bales of 160 kgs. each) based on the feedback received from exporter members.

This export estimate is higher by 22 lakh bales from the previous year’s cotton exports estimate of 50 lakh bales of 170 kgs. each (equivalent to 53.13 lakh running bales of 160 kgs. each). The carryover stock at the end of the season i.e. on 30^{th} September 2021 is estimated at 94 lakh bales of 170 kgs. each (equivalent to 99.88 lakh running bales of 160 kgs. each).

**HIGHLIGHTS OF DELIBERATIONS HELD AT THE VIRTUAL MEETING OF THE STATISTICS COMMITTEE OF COTTON ASSOCIATION OF INDIA ON SATURDAY, THE 12 ^{TH} JUNE 2021**

The Crop Committee of the Cotton Association of India (CAI) held its meeting on 12^{th} June 2021, which was attended by in all 26 members representing all cotton producing states and stakeholders. The Committee arrived at the May estimate of the cotton crop for the 2020-21 crop year and drawn the estimated cotton balance sheet based on the data available from various trade sources, upcountry associations and other stakeholders.

The following are the highlights of the deliberations held at this meeting: –

**CONSUMPTION**

The CAI has increased its consumption estimate for the current crop year by 10 lakh bales to 325 lakh bales of 170 kgs. each (equivalent to 345.31 lakh running bales of 160 kgs. each) from its previous estimate of 315 lakh bales of 170 kgs. each (equivalent to 334.69 running bales of 160 kgs. each).

The Committee has made this revision considering the brisk demand for cotton yarn despite disruptions caused on account of the lockdown implemented to arrest the second wave of COVID-19 pandemic in the country. The consumption now estimated for the current crop year is higher by 75 lakh bales compared to the previous year’s consumption estimate of 250 lakh bales of 170 kgs. each (equivalent to 265.63 lakh running bales of 160 kgs. each). Upto 31^{st} May 2021, the consumption is estimated at 220 lakh bales of 170 kgs. each (equivalent to 233.75 lakh running bales of 160 kgs. each).

**PRODUCTION**

The CAI has reduced its production estimate for the season 2020-21 to 356.00 lakh bales of 170 kgs. each (equivalent to 378.25 lakh running bales of 160 kgs. each) from its previous estimate of 360 lakh bales of 170 kgs. each (equivalent to 382.50 lakh running bales of 160 kgs. each) made during the last month. The Committee members will have a close watch on the cotton arrivals in the subsequent months and if any addition or reduction is required to be made in the production estimate, the same will be made in the CAI reports.

**IMPORTS**

The estimate of cotton imports into India has been reduced to 10 lakh bales of 170 kgs. each (equivalent to 10.63 lakh running bales of 160 kgs. each) from its previous estimate of 11 lakh bales of 170 kgs. each (equivalent to 11.69 lakh running bales of 160 kgs. each) made during the last month. The cotton import estimate made now is lower by 5.50 lakh bales from that estimated for the 2019-20 crop year. Upto 31^{st} May 2021, about 8.25 lakh bales of 170 kgs. each (equivalent to 8.77 lakh running bales of 160 kgs. each) are estimated to have been arrived the Indian Ports.

**EXPORTS**

The estimate of cotton exports for the 2020-21 crop year has been increased by 7 lakh bales to 72 lakh bales of 170 kgs. each (equivalent to 76.50 lakh running bales of 160 kgs. each) based on the input received from exporter-members. Upto 31^{st} May 2021, about 58 lakh bales of 170 kgs. each (equivalent to 61.63 lakh running bales of 160 kgs. each) are estimated to have been shipped.

**ARRIVALS**

Indian cotton arrivals during the months of October 2020 to May 2021 are estimated at 340.19 lakh bales of 170 kgs. each (equivalent to 361.45 lakh running bales of 160 kgs. each).

**STOCK AS ON 31**^{ST}MAY 2021

The cotton stocks held by mills in their godowns on 31^{st} May 2021 are estimated at 90 lakh bales of 170 kgs. each (equivalent to 95.63 lakh running bales of 160 kgs. each). The mills have on an average 101 days’ cotton stock in their godowns. The CCI, Maharashtra Federation, MNCs, Ginners, Traders, MCX, etc. are estimated to have a total stock of about 105.44 lakh bales of 170 kgs. each (equivalent to 112.03 lakh running bales of 160 kgs. each) as on 31^{st} May 2021. Thus, the total stock held by spinning mills and stockists including the stock of cotton sold but not delivered on 31^{st} May 2021 is estimated at 195.44 lakh bales of 170 kgs. each (equivalent to 207.66 lakh running bales of 160 kgs. each).

**CLOSING STOCK AS ON 30**^{TH}SEPTEMBER 2021

Closing stock as on 30^{th} September 2021 is estimated by the Committee at 94 lakh bales of 170 kgs. each (equivalent to 99.88 lakh running bales of 160 kgs. each).