CAI Reduces Cotton Import Estimates

Market News

CAI Reduces Cotton Import Estimates

Cotton imports are lower at 29 lakh bales by 2 lakh bales compared to the estimate of 31 lakh bales made in the previous month and higher by 14 lakh bales compared to the previous year's estimate at 15 lakh bales. CAI has lowered its import estimate for the season in view of actual shipments reaching Indian ports being lower than estimated previously, said Cotton Association of India (CAI). In its August estimate, CAI has retained its cotton crop estimate for 2018-19 at 312 lakh bales of 170 kgs. each, which is at the same level as in the previous estimate. The CAI has maintained its cotton crop estimate for the Northern Zone at the same level as in its previous month's estimate i.e. at 59 lakh bales. However, there is a reduction of 10,000 bales in the cotton crop estimate for Punjab and an increase of 10000 bales in the cotton crop estimate for Lower Rajasthan. Similarly, CAI has maintained cotton crop estimate for the Central Zone at the same level as in its previous month estimate i.e. at 180.68 lakh bales although there is an increase of 50,000 bales in the cotton crop estimate for Gujarat and a reduction of 25,000 bales each in the cotton crop estimate of Maharashtra and Madhya Pradesh. There is no change in the cotton crop estimates of the remaining states. The total cotton supply estimated by the CAI during the period from October 2018 to August 2019 is 363.02 lakh bales of 170 kg each which consists of the arrivals of 307.02 lakh bales up to 31 August 2019, imports of 23 lakh bales up to 31 August 2019 and the opening stock estimated by the CAI at 33 lakh bales at the beginning of the season. Further, the CAI has estimated cotton consumption during the months of October 2018 to August 2019 at 288.75 lakh bales of 170 kg each while the export shipment of cotton (excluding cotton waste) estimated by the CAI upto August 2019 is 43 lakh bales of 170 kg each. Stock at the end of August 2019 is estimated at 31.27 lakh bales including 17.55 lakh bales with textile mills and remaining 13.72 lakh bales with CCI and others (MNCs, traders, ginners, etc.).