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Cotton bale output for 2006-07 contradicts estimates

Mar '07

Cotton crop in the country for current season would be around 270 lakh bales was the initial estimate made by Cotton Advisory Board (CAB) in December 2006 but is actually expected to remain around 262-265 lakh bales (each of 175 kg) during the current season 2006-07 (October-September), trade sources said.

CAB is scheduled on March 9, 2007 to discuss the crop scenario and cotton price trend in the country.

Total availability was expected to be around 330 lakh bales with expected crop at 270 lakh bales and imports estimated at 4 lakh bales.

Consumption by mills was estimated at 200 lakh bales (up from 182 lakh bales in previous season), SSI units consumption at 20 lakh bales, non-mill at 15 lakh bales and exports at 50 lakh bales, with total consumption reaching to 285 lakh bales and the rest being carryover stock of 45 lakh bales.

Domestic cotton markets have remained firm for past few days on the back of increase in consumption by domestic mills and good export demand.

Kapas April 2007 contract on MCX was closed at Rs442.50 per 20 kg which is ruling higher over Rs340 per 20 kg in the same period last season.

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