Mills set to take a major hit as Jan arrivals signal poor cotton crop

Wide gap seen between initial estimates and actual output; mills may be forced to import at sky-high prices

Cotton output for the year 2018-19 (November–October) is expected fall way below initial estimates, according to trade sources. They say crop arrivals in early January are a fair measure of the estimated output, and that the current arrivals suggest a drastic decline in output. The cotton year starts on November 1 and ends on October 31 the following year.

The Cotton Association of India (CAI), an apex trade body, had pegged the 2018-19 cotton crop at 34 million bales a month ago, down from 36.5 million bales in 2017-18.

However, recent arrivals have been dismal, with the total this season