CAI lowers 2019-20 cotton crop estimate to 330 lakh bales

In its April estimate of the cotton crop for the ongoing season that began on October 1, 2019, the Crop Committee of the association has reduced its estimated total cotton supply till end of the current season i.e. up to September 30, 2020 to 377.00 lakh bales. The total cotton supply includes opening stock of 32 lakh bales at the beginning of the season, and imports estimated at 15 lakh bales.

Cotton imports into India are now estimated lower at 15 lakh bales compared the previous estimate of 25 lakh bales due to around 10 per cent depreciation in the Indian currency, which has made domestic cotton cheap and imported cotton costly. So, cotton exports are expected to go up by 5 lakh bales to 47 lakh bales.

Domestic cotton consumption for the current season ending September 30, 2020, is 280 lakh bales, a reduction of 51 lakh bales compared to pre-pandemic estimate. As a result, the carryover stock at the end of the season would be 50 lakh bales, CAI said.

Fibre2Fashion News Desk (RKS)