The Cotton Association of India (CAI) has estimated a 13.62 per cent increase in the cotton production of the country. A press release issued by Atul Ganatra, president CAI has stated that the country is expected to produce 354.50 lakh bales ( each bale weighing 170 kgs) of cotton in the current year.
India’s cotton acreage this kharif had increased from 117.66 lakh hectares of last year to 124.90 lakh hectares. Farmers have diverted their pulses growing area for cotton as the fibre had traded well above its Minimum Support Price (MSP) through out the last season. However increased cotton area and cheaper imports had led to industry experts fearing for a reversal of the price trend this season.
Ganatra, talking about the present season said the production would 42.50 lakh bales higher than the 312 lakh bales the country had produced last year. ‘The increase in crop estimated for the 2019-20 season is on account of higher acreage under cotton than that of the previous season. Moreover, the CAI estimates yields to be higher as the country has received a good rainfall this year. However, there are reports of damage to the crop in some pockets due to flooding on account of excess rains. Keeping this in mind, increase in crop is restricted to 13.62%” the release said.
The CAI has estimated that the total cotton supply till the end of the cotton season ie till September 30, 2020 would 403 lakh bales which includes 23.50 lakh bales of opening stock at the start of season and imports of 25 lakh bales.
Domestic consumption estimated by the CAI for the 2019-20 crop year i.e. upto 30th September 2020 is 315 lakh bales while the CAI has estimated export of cotton for the season at 42 lakh bales. The carryover stock estimated at the end of the season is 46 lakh bales.