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Indian textile mills may import cotton this season
Apr '12
India is expected to end up with cotton stock of about 2.5 million bales of 170 kg each, during the current cotton season that runs till September 2012, as against last year's closing stock of 3.9 million bales.

This is likely to create a shortage of quality cotton by the end of the season and textile mills in the country may resort to import of cotton, according to industry analysts.

Experts say a closing stock of around 5 million bales of cotton would be needed to meet two-and-a-half months' demand of domestic textile industry. This is because, unlike last year, textile mills have not purchased large amounts of cotton this season, owing to lack of purchasing capacity.

They add that the demand for cotton is likely to go up as soon as the power supply situation gets better in south Indian states like Tamil Nadu.

Meanwhile, the Cotton Advisory Board (CAB) had upwardly revised the figure of total cotton exports from India to 11.5 million bales from its earlier estimate of 8.4 million bales. Last year, India exported 7.8 million bales of cotton.

The CAB has, however, downwardly revised its estimates of total consumption of cotton by domestic textile mills to 23.2 million bales from its January 2012 estimate of 24 million bales.

The CAB has projected India's total cotton production this season at 34.7 million bales.

Fibre2fashion News Desk - India

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