'Avoid panic buying as cotton supply position comfortable'

:Southern India Mills' Association today asked spinning mills to avoid panic buying, as cotton position in domestic and global markets was very comfortable.

SIMA Chairman M Senthilkumar said cotton production in India for the 2016-17 season might be around 342 to 345 lakh bales as against 351 lakh bales estimated by Cotton Advisory Board.

Cotton arrival as on March 20 was around 250 lakh bales as against 260 lakh bales arrived during the same period last year, he said in a release.

CAB has estimated cotton imports as 17 lakh bales and felt it might touch 30 lakh bales at the end of the season, if the present trend of imports continued, he said.
 

Stating that mill consumption might be around 295 lakh bales against 303 lakh bales estimated by CAB as the average count becomes finer, he said exports might be only around 40 lakh bales against estimated 50 lakh as Indian cotton price was not currently attractive in the international market.

The exports contracted so far might be only around 30 lakh bales, he said,adding India now has contracted for around 15 lakh bales of cotton imports from West Africa and US.

Expressing confidence that the prices might ease after Australian cotton arrivals in May,Senthilkumar said the supply position in India is very much comfortable. He therefore suggested that mills avoid panic buying, considering all these aspects.