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India to consume 313 lakh bales cotton this year: CCI
Jan '17
The total cotton consumption of India is likely to increase to 313 lakh bales in the current crop season as compared to 312 lakh bales during the previous year, said the Cotton Corporation of India (CCI). The acreage under cultivation could decrease by 12 per cent to 105 lakh hectares, but production may increase by about 4 per cent to 351 lakh bales.

“During current cotton season 2016-17, the acreage under cotton cultivation is expected to decrease by around 12 per cent to 105 lakh hectares as against 118.77 lakh hectares during previous year due to delayed rains, fear of pest attacks viz white fly in Northern zone and pink boll worm in Gujarat region and farmers switching over to other crops,” MM Chockalingam, chairman and managing director (I/C), CCI, told Fibre2Fashion.

Nevertheless, cotton yield will increase from 338 lakh bales in 2015-16 to 351 lakh bales this year owing to above normal rains and favourable agro-climatic conditions, he said.

Rise in the consumption of cotton will help reduce India’s dependability on cotton export.

“After including import and opening stock, the exportable surplus availability of cotton in the country is getting concentrated and it is expected that during cotton season 2016-17 cotton export may reduce to 48 to 50 lakh bales as against 69 lakh bales during cotton season 2015-16,” added the CCI chief.

Owing to the demand and supply balance, domestic cotton prices are not likely to touch the MSP level and are expected to remain stable throughout the year, said Chockalingam.

The cotton production of the country for 2016-17 will be adequate to meet the demands of the textile industry of the country.

“During the current cotton season, cotton production in the country is estimated at 351 lakh bales as against estimated total consumption including mills, SSI and non-textile consumption of 313 lakh bales. After adding import and excluding export, the closing stock in the country is expected to be 48 lakh bales, which is equivalent to about two months consumption of the domestic textile industry,” he noted.

However, CCI advises the government to keep a continuous watch on cotton exports during the entire cotton season and intervene if the export exceeds the expected limit.

Speaking about India’s cotton exports, Chockalingam said, “Up to cotton season 2013-14, China was the biggest importer of Indian cotton and imported about 55 to 60 per cent of the total cotton export from India. Thereafter, due to changes in import policy of China for lesser import up to bare minimum requirement as per WTO agreement and huge unsold stock, export to China started reducing and reduced to 9 per cent of total export by India during 2015-16.”

After cotton season 2013-14, demand of Indian cotton by other neighbouring countries like Bangladesh, Pakistan, Vietnam, Indonesia, Turkey and Thailand increased due to an increase in their consumption and establishment of numerous newly constructed spinning and weaving mills. (KD)

Fibre2Fashion News Desk – India

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