CAI Lowers Cotton Crop Estimate By 6 Lakh Bales For 2018-19

Market News

CAI Lowers Cotton Crop Estimate By 6 Lakh Bales For 2018-19

Cotton Association (CAI) has released its April estimate of the cotton crop for the season 2018-19 beginning from 1^st October 2018. The cotton crop estimated by the CAI for 2018-19 crop year now is 315 lakh bales, which is lower by 6 lakh bales compared to its previous estimate of 321 lakh bales released during last month. The Cotton crop estimate now released by the CAI for Maharashtra is lower by 2 lakh bales compared to its previous estimate made during the last month while the cotton crop estimates for the North Zone, Madhya Pradesh, Telangana and Andhra Pradesh now made by the CAI are lower by 1 lakh bales each compared to the CAI’s previous month estimate. The scarcity of water in some states and uprooting of cotton plants by farmers in about 70-80% area without waiting for 3^rd and 4^th pickings are stated to be the main reasons for reduction in the cotton crop this year. Total cotton supply estimated by the CAI during the period from October 2018 to April 2019 is 314 lakh bales of 170 kgs. each which consists of the arrival of 278.73 lakh bales up to 30^th April 2019, imports of 7.27 lakh bales up to 30^th April 2019 and the opening stock at the beginning of season on 1^st October 2018 at 28 lakh bales. Further, the CAI has estimated cotton consumption during the months of October 2018 to April 2019 at 183.75 lakh bales while the export shipment of cotton estimated by the CAI up to 30^th April 2019 is 42.50 lakh bales of 170 kgs. each. Stock at the end of April 2019 is estimated by the CAI at 87.75 lakh bales including 40 lakh bales with textile mills and remaining 47.75 lakh bales with CCI, MNCs and others (MNCs, Traders, Ginners, etc.). The yearly Balance Sheet projected by the CAI estimates total cotton supply till end of the cotton season i.e. up to 30^th September 2019 at 374 lakh bales of 170 kgs. each consisting of the Opening Stock of 28 lakh bales at the beginning of the cotton season, cotton crop for the season estimated at 315 lakh bales and imports estimated by the CAI at 31 lakh bales, which are higher by 16 lakh bales compared to the previous year’s import estimated at 15 lakh bales. Domestic consumption estimated by the CAI for the entire crop year i.e. up to 30^th September 2019 is 315 lakh bales, which is lower by 1 lakh bales compared to its previous estimate made during last month while the CAI has estimated exports for the season at 46 lakh bales, which are lower by 23 lakh bales compared to the previous year’s cotton exports estimate of 69 lakh bales. The carry over stock estimated at the end of the season is estimated at 13 lakh bales.