Usda Puts Cotton Crop At 164 Lakh Bales

With unseasonal rains in December affecting crops in Maharashtra and Madhya Pradesh, cotton production in the country has been downscaled to 164 lakh bales during the current season (October 1997-September 1998), says a report released by the United States Department of Agriculture (USDA).

Estimates for the 1997-98 cotton production have been revised downwards by 4,00,000 bales to 16.4 million bales, including 5,00,000 bales loose cotton, the report released last week said.

The USDA report is almost in tune with the East India Cotton Association (EICA) statement about cotton production. EICA had put the output at 160 lakh bales. These estimates are against projections of 169 lakh bales by the Cotton Advisory Board (CAB).

 

Stating that cotton prices in the domestic markets were firm, the report said it could stimulate large cotton imports during the season, mainly in view of lower prices in the global market.

Cotton prices are ruling at a four-year low in the global markets. The USDA report confirms the Indian Cotton Mills Federation (ICMF) expectation of cotton imports being around five lakh bales. On the other hand, export outlook for Indian cotton was bleak, the report said.

The report said continuous rains during November and December in the cotton-growing areas of Maharashtra and Madhya Pradesh coincided with late flowering and boll opening.

Rains continued even into the early part of January in the Vidarbha region of Maharashtra which caused bolls to drop. Some damage was also caused by pests, particularly by boll worms, the report said.

However, the late rain in Vidarbha region was likely to stimulate a second flushing during March which could help recoup some losses.

Pointing out the suicide by over 55 cotton growers in Andhra Pradesh, the report said that losses were mostly confined to some pockets of Godavari district. The crop loss in Andhra Pradesh was minimal, it said.

Comparing current cotton arrivals against last year when a record 176.5 lakh million bales of cotton was produced, the report said cumulative market arrival till January 27 was 10 per cent lower than last season.

Quality of the arrivals was also poor except in Gujarat and some pockets in South India. The report also mentioned that growers were holding back their stocks in Punjab and Gujarat in view of the continued upward trend in the market.

The report said arrivals would be higher during February and March as crops from the central and southern parts of the country had started entering the markets.

Commenting on the price spurt, the report said prices during the end of January were five to 10 per cent higher than the rates in December end.

Prices for most grades of staple cotton are 16 to 35 per cent higher than last year's price, it said, adding that Bengal deshi cotton prices were almost double than last year's prices.