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Cotton output to fall & consumption to rise
Dec '10
The Chairman of The Southern India Mills' Association, (SIMA), Mr. J. Thulasidharan while addressing the audience at the 6th edition of Texfair-2010 in Coimbatore on December 17th estimated that due to unseasonal monsoon and floods in the cotton growing states of Andhra Pradesh, Maharashtra and some parts of Gujarat, cotton production for the 2010-11 season will be about 290 lakh bales (29 million bales of 170 kg each).

This is 35 lakh bales (3.5 million bales) less than the Indian Cotton Advisory Board's estimate of 325 lakh bales (32.5 million bales). The Southern India Mills' Association in Coimbatore, India is a 400 member body representing the spinning industry with majority of its members in the southern states of India

While the new estimate by SIMA is 29 million bales, the closing stock for the season ending in September 2011 is estimated to be 34.5 lakh bales (3.45 million bales). The cotton production is predicted to go down and the domestic cotton consumption is expected to go up.

There will be one million spindles added during April 2011- March 2012. During April 2009- March 2010, 3.5 million spindles were added. New spindles added over the two year period (April 2010-March 2012) will be 4.5 million. While speaking to this scribe in the sideline of Texfair event in Coimbatore, the additional spinning capacity numbers were also echoed by an executive of Rieter India Pvt. Ltd, one of the three leading spinning machinery suppliers in India.

According to this industry person, the investment capacity of the spinning mills is limited due to the existing machinery manufacturers' production capacity. He further added, the spinning mills will be interested in adding more spindles if the machinery producers can supply more. The investments by Indian spinners will lead to increased domestic cotton consumption in the next year and further, which may lead to cotton supply squeeze.

By: Seshadri Ramkumar, Texas Tech University, USA

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