CAI reduces India's 2020-21 cotton crop estimate to 354.5 lakh bales

The CAI has maintained its cotton crop estimate for the Northern Zone at the same level as in its previous month’s estimate i.e. at 65.50 lakh bales. The cotton crop estimate for the Central Zone has been reduced by 0.50 lakh bales to 193.50 lakh bales.

"There is a reduction of 2.50 lakh bales in the crop estimate for Gujarat state, while the crop estimates of Maharashtra & Madhya Pradesh have been increased by 1.50 lakh bales and 0.50 lakh bales respectively compared to the estimates of these states made in the previous month," CAI said in a press release.

The cotton crop estimate for Southern Zone has been reduced by 1.00 lakh bales to 90.50 lakh bales. The cotton crop for Telangana is estimated lower by 1.00 lakh bales, whereas the estimates for the states of Andhra Pradesh, Karnataka and Tamil Nadu have been maintained at the same levels as estimated previously. Also, there is no change in the cotton crop estimate for Orissa.

The total cotton supply estimated by the CAI during the period from October 2020 to July 2021 is 482.61 lakh bales. This consists of the arrivals of 348.61 lakh bales upto July 31, 2021, imports of 9.00 lakh bales upto July 31, 2021, and the opening stock at the beginning of the season on October 1, 2020 of 125 lakh bales.

Further, the CAI has estimated cotton consumption during the months of October 2020 to July 2021 at 275 lakh bales, while the export shipment of cotton upto July 31, 2021 is estimated at 70.00 lakh bales.

Stock at the end of July 2021 is estimated by the CAI at 137.61 lakh bales, including 80.00 lakh bales with textile mills, and the remaining 57.61 lakh bales with Cotton Corporation of India (CCI), Maharashtra Federation and others (MNCs, traders, ginners, etc.).

The yearly Balance Sheet projected by the CAI estimates total cotton supply till end of the cotton season i.e. upto September 30, 2021 at 489.50 lakh bales consisting of the Opening Stock of 125 lakh bales at the beginning of the cotton season, cotton crop for the season at 354.50 lakh bales and imports estimated by the CAI at 10 lakh bales, which are lower by 5.50 lakh bales from the previous year’s import estimated at 15.50 lakh bales.

Domestic consumption for the entire crop year i.e. upto September 30, 2021 is now estimated higher by 5 lakh bales to 330 lakh bales "considering the brisk demand for cotton yarn despite disruptions caused by lockdown to arrest spread of the second wave of COVID-19," CAI president Atul S Ganatra said in the release.

The CAI has also increased the exports estimate for the season from its previous estimate of 72 lakh bales to 77 lakh bales based on the feedback received from its exporter members. This export estimate is higher by 27 lakh bales from the previous year’s cotton exports estimate of 50 lakh bales.

The carryover stock at the end of the season i.e. on September 30, 2021 is now estimated at 82.50 lakh bales, CAI said.

Fibre2Fashion News Desk (RKS)