CAI Projects Lower Cotton Yields For Current Crop Year

Market News

CAI Projects Lower Cotton Yields For Current Crop Year

Cotton Association of India (CAI) has released its December estimate of the cotton crop for the season 2018-19 beginning from 1^st October 2018. The CAI has estimated cotton crop for 2018-19 season at 335 lakh bales of 170 kgs each which is lower by 5.25 lakh bales than its previous estimate of 340.25 lakh bales made during last month. The CAI has reduced the crop estimate for Gujarat, Maharashtra and Telangana by 1.50 lakh bales, 2 lakh bales and 2 lakh bales respectively. The main reason for reduction in cotton crop is that farmers have uprooted their cotton plants in about 70-80% cotton area faced with moisture deficiency as a result of less rains. This in turn affords no scope for 3rd and 4th pickings. Total cotton supply projected by the CAI during the period from October 2018 to December 2018 at 142.50 lakh bales consists of the arrival of 115.97 lakh bales up to 31^st December 2018, imports of 3.53 lakh bales upto 31^st December 2018 and the opening stock at the beginning of the season estimated by the Committee at 23 lakh bales. Further, the CAI has estimated cotton consumption during the months of October 2018 to December at 80 lakh bales while the export shipment of cotton up to 31^st December 2018 has been estimated at 17 lakh bales. Stock at the end of December 2018 is estimated by the CAI at 45.50 lakh bales including 30 lakh bales with textile mills and the remaining 15.50 lakh bales with CCI and others (MNCs, traders and ginners). The CAI has also projected yearly Balance Sheet for the cotton season 2018-19 wherein total cotton supply till end of the cotton season i.e. up to 30^th September 2019 has been estimated at 385 lakh bales of 170 kgs. each consisting of the opening stock of 23 lakh bales at the beginning of the season, cotton crop for the season estimated at 335 lakh bales and imports estimated by the CAI at 27 lakh bales, which are higher by 12 lakh bales compared to the previous year’s import estimated at 15 lakh bales. The CAI has estimated domestic consumption of 320 lakh bales which is lower by 4 lakh bales compared to the consumption figure estimated during the last month, while the CAI has estimated exports for the season 2018-19 at 51 lakh bales, which are lower by 18 lakh bales compared to the export of 69 lakh bales estimated during the last year. The carry-over stock at the end of the 2018-19 season is estimated by the CAI at 14 lakh bales.