Cotton exports likely to be 8 mn bales, says Board

The Cotton Advisory Board (CAB) has estimated exports to be eight million bales (170 kg) for the current cotton year. Last year, seven million bales of cotton were exported.

“Major demand has come in from China, due to which exports are estimated to be higher this year,” said B A Patel, joint textile commissioner. From the current season, cotton exports have been put under the Open General Licence and the industry estimates 1.5 million bales have been exported till now.

Exports are expected to pick up once arrivals in the domestic market increase and prices come down.

CAB has also marginally revised cotton production estimates for the current season that started from October 1, to 35.6 million bales compared to the previous estimate of 35.5 million bales.

 

“There are reports of marginal crop damage from Punjab and Andhra Pradesh which have been factored in new estimates,” said Patel.

The area under cotton has also increased this year to 2.5 million hectares from 2.4 million hectares last year. In 2010-11, India produced 32.5 million bales of cotton. This year’s opening stock is also reported to be higher at 4.7 million bales, compared to 4 million bales last year. Closing stock is also estimated to be 7.8 million bales, compared to 4.7 million bales last year.

Yield is estimated to be higher at 498.42 kg per hectare, compared to 471.64 kg per hectare last year. Mill consumption has been revised downward to 21 million bales from last year’s consumption of 21.5 million bales.

“Consumption by mills and small-scale industries has been revised downward due to their weak economic condition,” said Patel. Cotton prices in the spot market of Ahmedabad moved up marginally by Rs 200 to Rs 37,700 a candy (356 kg) from yesterday’s Rs 37,500 a candy.