Home / Knowledge / News / Textiles / CAB estimates 2015-16 closing stock at 43 lakh bales
CAB estimates 2015-16 closing stock at 43 lakh bales
13
Jul '16
The Cotton Advisory Board (CAB) has estimated a comfortable cotton supply position with closing stock of 43 lakh bales for the cotton season 2015-16, ending on September 30.
 
CAB has increased the closing stock estimate from its February 2016 estimate of 35 lakh bales.
 
In 2015-16 season, India produced 338 lakh bales of cotton, while it imported another 15 lakh bales, according to the CAB. Including the opening stock of 66 lakh bales, the total supply during the season is projected at 419 lakh bales.
 
On demand side, mills consumption is pegged at 298 lakh bales, while non-mill use at 68 lakh bales. Including export of 68 lakh bales, the total demand is estimated at 376 lakh bales thus leaving a closing stock of 43 lakh bales.
 
Post release of CAB estimates, The Southern India Mills' Association (SIMA) chairman M Senthilkumar advised mills to avoid panic purchase as the traders are taking undue advantage and have increased the prices abnormally closer to Rs 48,000 per candy, as against Rs 33,200 per candy prevailing till April 2016.
 
Stating that the domestic cotton price today is expensive by over Rs 3,000 per candy, he suggested larger mills to opt for import so that the domestic prices would soften. 
 
SIMA chairman pointed out that the traders have been speculating the prices stating the acreage for the forthcoming season would drop. On the contrary, CAB has estimated a reasonable area and therefore, the cotton supply position would be comfortable in the forthcoming season also.
 
He said the abnormal increase in cotton price would have a serious impact on the entire textile value chain as the international cotton price is ruling over 10 per cent lower and the Indian cotton textiles and clothing industry cannot compete in the international market and the exports would drop further. 
 
“A large number of mills have reduced their capacity utilisation as they would incur huge cash losses with the current cotton prices,” Senthilkumar said. He added that the yarn price (40s count) has increased from Rs 6 to 23 per kg during last three months while the clean cotton cost has increased over Rs 40 per kg.
 
For the benefit of the farmers and the textile industry and to curb speculations, he appealed to the Central government to strongly consider SIMA's earlier proposal of 'Cotton Price Stabilisation Scheme for spinning sector' consisting of 5 per cent interest subvention for cotton purchase during October to April (peak season), increasing the credit limit from three months to nine months and reducing the margin money from 25 per cent to 10 per cent. (RKS)
 

Fibre2Fashion News Desk – India


Must ReadView All

'Sportswear is much more mainstream than earlier'

Fashion | On 20th Jul 2018

'Sportswear is much more mainstream than earlier'

The business of sportswear has evolved at a fast pace over the years. ...

Courtesy: YKK

Textiles | On 20th Jul 2018

Japanese firm YKK explores opening office in Uzbekistan

Japanese company YKK recently discussed with the Uztuqimachiliksanoat ...

HFPA alerts member firms on latest US tariff announcement

Textiles | On 20th Jul 2018

HFPA alerts member firms on latest US tariff announcement

The US Home Fashion Products Association (HFPA) has alerted its...

Interviews View All

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Headhonchos
Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

Manoj Sorathiya

Surat-based Sunrise Imports & Exports Co is a manufacturer and...

Kalai Selvi

Vidyashilp Academy in Bengaluru is the country's first Fairtrade School....

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


July 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search