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CAI cuts cotton export estimate by 10%


PUNE: Cotton Association of India has revised its cotton export estimate for 2020-21 downward by 10% to 5.4 million bales of 170 kilograms each because Indian cotton is no longer the cheapest in the world after a jump in domestic prices.


“Indian cotton is no longer the cheapest in the world as price of our cotton has increased from Rs 38,000 per candy of 356 kg each to Rs 41,500, while the international prices have declined by about 4%,” said Atul Ganatra, president of the trade body that represents all segments of cotton trade from growers and ginners to mills and merchants to importers and exporters.


Reduction in export demand due to the imposition of lockdown in some European countries has also been factored in, CAI said in a release on Monday.


The association had last month estimated exports for the 2000-21 season that started on October 1 at six million bales. The revised export estimate is still 400,000 bales more than that estimated for the previous cotton season.


CAI has retained its cotton crop estimate for the current season at 35.6 million. Cotton crop finalised for 2019-20 season was 36 million bales.


The association estimated total cotton supply during October and November at 20.11 million bales that comprises arrivals of 9.16 million bales, import of 200,000 bales of cotton up to November 30, and an opening stock estimated at 10.75 million bales at the start of the cotton season.


The trade body has estimated cotton consumption during October and November at 5.75 million bales of 170 kg each and exports of 1.20 million bales in the first two months of the season. Stock at the end of November is estimated at 13.16 million bales, CAI said.


CAI Crop Committee has estimated total cotton supply till end of the cotton season 2020-21 at 47.75 million bales, at the same level as estimated in the previous month. This includes opening stock of 10.75 million bales, estimated crop for the season at 35.60 million bales and imports estimated at 1.40 million bales. The import estimate is slightly less than 1.55 million bales estimated for the cotton season 2019-20.


The trade body has estimated domestic consumption of 33 million bales during the current season, which is at the same level as estimated in the previous month. This is eight million bales higher than last year’s consumption estimate of 25 million bales. “The consumption is expected to reach its normal level this year after the disruptions and labour shortage caused on account of the lockdown imposed in the country to arrest spread of Covid-19 pandemic,” CAI said in its release.


The carry-over stock at the end of 2020-21 season is estimated at 9.35 million bales against 10.75 million bales at the end of the previous cotton season.


Cotton Corporation of India, Maharashtra State Cooperative Cotton Growers Marketing Federation, multinational companies, ginners and Multi Commodity Exchange are estimated to have combined cotton stock of about 9.16 million bales at the end of November, CAI said. Total stock held by spinning mills and stockists as on November 30 is estimated at 13.16 million bales, it said.

CAI cuts cotton export estimate by 10% CAI cuts cotton export estimate by 10% Reviewed by TechCO on 12/07/2020 Rating: 5

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