Cotton Association reduced the estimate of cotton production for this year, also estimated reduction in consumption
In Telangana, cotton production during the season is expected to fall by 2 lakh bales, Gujarat and Karnataka by one lakh bales each.
cotton production forecast
Image Credit source: PBNS
This year due to crop shortfall in many cotton producing states of the country Cotton ,cotton) may be less than the previous estimate. The Cotton Association of India (CAI) has released its estimates of cotton production for this year (cotton production estimate) is cut. The current crop year ending in September, mainly due to lower projected production in Telangana (crop year) reduced the cotton production estimate by 5 lakh bales to 343.13 lakh bales. The cotton crop year continues from October to September. The total cotton production in the last season was 353 lakh bales. Along with this, the union has estimated that during this period domestic consumption may also see a decrease compared to the previous estimate.
Production may remain low by 2 lakh bales in Telangana
According to CAI, the latest estimate shows a reduction of 5 lakh bales as compared to the earlier estimate. Cotton production during the season is expected to fall by 2 lakh bales in Telangana, one lakh bales each in Gujarat and Karnataka, and 50,000 bales in Andhra Pradesh and Odisha. CAI has estimated the total supply of cotton at 272.20 lakh bales in the four months from October 2021 to January 2022. This includes arrival of 192.20 lakh bales, import of 5 lakh bales and opening stock of 75 lakh bales at the beginning of the season. In addition, the estimated cotton consumption from October 2021 to January 2022 is estimated to be 114 lakh bales, while exports are estimated to be 2.5 million bales till January 31, 2022. The domestic consumption estimated by CAI has been reduced to 340 lakh bales from its previous estimate of 345 lakh bales.
Exporters upset due to high cotton prices
At present, the prices of cotton remain on the rise. At the beginning of the year, cotton prices had increased by up to 80 per cent. Only last month, the industry association had suggested control of cotton exports, removal of 10 per cent duty on import of cotton and a mechanism to regulate the prices of cotton and other raw materials. According to the industry, the steep rise in cotton prices has posed a major challenge to garment manufacturers and exporters and they are losing their orders. In such a situation, if the production of cotton decreases even this year, then the problem for the exporters will increase.
