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CAB upwardly revises India's cotton consumption
Jan '12
India's Cotton Advisory Board (CAB) has upwardly revised its estimate for cotton consumption by domestic textile mills during the current cotton year to 21.6 million bales (1 bale = 170 kg) from the earlier estimated 21 million bales.

The marginal revision has been made by CAB on the basis of renewed demand for cotton by textile mills, which signals a revival of the cotton textile industry in the country, according to analysts.

CAB has also revised its estimate of cotton consumption by small-scale industries from the earlier 2 million bales to 2.4 million bales.

Thus, the total consumption of cotton by both large and small textile units in the country is likely to surpass the earlier consumption estimate by one million bales.

Cotton exports from India are also projected to rise to 8.4 million bales this season compared to exports of 8 million bales last season.

On the other hand, the total cotton production during the current season, which began in October 2011, has been revised downwards by 1.1 million bales from the earlier 35.6 million bales to 34.5 million bales, because of damage to crop in parts of Maharashtra and Andhra Pradesh.

Still, the total cotton production this season is likely to be higher than the output of 32.5 million bales registered in 2010-11 cotton season.

Analysts say the prices of cotton may remain firm owing to rise in domestic consumption, along with an expected increase in exports.

Fibre2fashion News Desk - India

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