CAI pegs India's cotton output at 345 lakh bales

The Cotton Association of India (CAI) has estimated the country's cotton output for the 2015-16 season (beginning October 1, 2015) at 345 lakh bales of 170 kg each, according to media reports.

Adding last season's surplus, the total cotton supply would be 432.60 lakh bales for the season. Of this, domestic consumption is projected at 304 lakh bales, which will leave a surplus of 128.60 lakh bales, CAI said.

Up to February-end, cotton arrival is estimated at 245 lakh bales, which is 11.31 per cent lower than 276.25 lakh bales of arrival during the same period last season.

The lower arrival this season indicates a lower crop, and if the trend continues, the estimate will have to be further revised downwards, CAI said.

Pest attack in parts of Punjab and Haryana and drought for second consecutive year in some areas have reduced cotton yields this season. (RKS)