The Cotton Association of India (CAI) recently increased its cotton crop estimate for the 2020-21 cotton season, which began on October 1, by 2.50 lakh bales to 358.50 lakh bales of 170 kg each (380.91 lakh running bales of 160 kg each) from its previous estimate of 356 lakh bales of 170 kg each (378.25 lakh running bales of 160 kgs each) made during early December.
Total cotton supply estimated by the CAI between October and December last year is 327.35 lakh bales of 170 kg each (347.81 lakh running bales of 160 kg), which comprised arrivals of 197.85 lakh bales of 170 kg each (210.22 lakh running bales of 160 kg each) between October and December and import of cotton estimated at 4.50 lakh bales of 170 kg each (4.78 lakh running bales of 160 kg each) up to December 31.
It also comprised opening stock as on October 1, in which the committee has made a one-time increase from 107.50 lakh bales of 170 kg each to 125 lakh bales of 170 kg each (132.81 lakh running bales of 160 kg each) on account of an inadvertent error crept in not accounting the stock of sold but not delivered cotton of government agencies viz. CCI and Maharashtra Federation at the close of the previous cotton year, said a CAI.
Further, CAI estimated cotton consumption during October to December last year at 82.50 lakh bales of 170 kg each (87.66 lakh running bales of 160 kg each), while export shipments of cotton up to December 31 were estimated at 20 lakh bales of 170 kg each (21.25 lakh running bales of 160 kg each).
Stock at the end of December 2020 was estimated at 224.85 lakh bales of 170 kg each (238.90 lakh running bales of 160 kg each), including 65 lakh bales of 170 kg each (69.06 lakh running bales of 160 kg each) held by mills in their godowns on December 31 and 159.85 lakh bales of 170 kg each (169.84 lakh running bales of 160 kg each) held by CCI, the Maharashtra Federation, multinational corporations and ginners.
The CAI Crop Committee has estimated the total cotton supply till the end of the CY 2020-21 at 497.50 lakh bales of 170 kg each (528.59 lakh running bales of 160 kg each). This consists of the revised opening stock of 125.00 lakh bales of 170 kg each at the beginning of the season on October 1 last year, crop for the season estimated at 358.50 lakh bales of 170 kg each (380.91 lakh running bales of 160 kg each) and imports estimated at 14 lakh bales of 170 kg each (14.88 lakh running bales of 160 kg each).
The imports estimated for CY 2020-21 are less by 1.50 lakh bales of 170 kg each (16.47 lakh running bales of 160 kg each) estimated for the previous crop year.
Domestic consumption is now estimated at 330 lakh bales of 170 kg each (350.63 lakh running bales of 160 kg each), i.e. at the same level as estimated previously. There is an increase of 80 lakh bales of 170 kg each in the cotton consumption for the CY 2020-21 from previous year’s consumption estimate of 250 lakh bales.
The consumption is estimated to reach its normal level this year after the disruption and labour shortage caused on account of the lockdown imposed in the country. CAI has estimated exports for the season at 54 lakh bales of 170 kg each (57.38 lakh running bales of 160 kg each).
The carry-over stock at the end of CY 2020-21 is estimated at 113.50 lakh bales of 170 kg each (120.59 lakh running bales of 160 kg each). CAI’s crop committee held a virtual meeting on January 6.
