Cotton Association retains 2014-15 output estimate

Cotton production estimate has been kept unchanged at 382.75 lakh bales for the 2014-15 marketing year ending September, according to industry body. The Cotton Association of India (CAI) has retained the estimate of the crop at 38.27 million bales in 2014-15 marketing year (October-September). Production stood at 40 million bales (of 170 kg each) during 2013-14, according to CAI data. The association said the Cotton Corporation of India (CCI) has procured about 8.7 million bales to provide price support to the farmers, but has not been able to sell the stocks.

The pace at which the commodity is getting disposed, a sizable quantity is likely to remain unsold at the end of the season, CAI said. “This augurs very badly for the country and apprehensions of a major support price operation at the beginning of the next cotton season itself are looming large,” CAI said, while asking the CCI to quickly dispose of the stock.

The association said China is holding stock equivalent to its consumption of about two years and is finding difficulty in liquidating it. “The country needs to learn a lesson from the mistakes China made and dispose of the cotton lying with CCI quickly, to avoid getting into a China-like situation,” CAI said. The projected balance sheet drawn by the CAI for 2014-15 estimates total cotton supply at 453.65 lakh bales, while domestic consumption is estimated at 31.5 million bales.