Confederation of Indian Textile Industry (CITI), revealed in a latest update that the Cotton Advisory Board (CAB), had estimated the Cotton Crop to be 361 lakh bales (of 170 kg each) on 22nd November 2018. However subsequently based on the arrivals and crop situation, CITI feels that the cotton crop may go as low as 343 lakh bales in FY19, recording a drop of 7.87% over year. There is a great amount of uncertainty regarding the estimation of cotton crop situation in the country causing great hardship for value added textile industry, especially for the Spinning Industry.
There are rumours doing the rounds in the media indicating a very low crop estimation which is creating chaos in the market and prompting people to stock cotton in anticipation. CITI noted that if the yield is assumed to be the worst in 12 years, the cotton crop would be at 348 lakh bales. The organization also highlighted drought in many cotton growing regions of Gujarat, a few regions of Maharashtra and a few areas in other cotton growing states has affected cotton yield. Accordingly, CITI has revised the cotton crop estimates for 2018-19 based on the actual data collected from the cotton growing areas in the country to 343 lakh bales of 170 kgs.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)