Cotton production this year (October 2013-September 2014) is expected to be 375 lakh bales, 10 lakh bales more than last year.
At its first meeting for the season in Mumbai on Friday, the Cotton Advisory Board (CAB) estimated that heavy rains might have damaged nearly 10 lakh bales of cotton in Andhra Pradesh, Madhya Pradesh, Maharashtra, and Gujarat this year. However, this would be known only later when the arrivals increase. With 35 lakh bales of stock available from last year (opening stock) and 17 lakh bales of import, the total supply this year was likely to be 427 lakh bales.
Consumption by textile mills this year was likely to be 282 lakh bales (including demand by small-scale textile mills). Cotton exports from the country were likely to be 90 lakh bales as against nearly 102 lakh bales in 2012-2013.
Price of Shanker-6 variety of cotton, which is widely used by the textile industry, was Rs. 41,500 a candy on Friday. It was nearly Rs. 47,000 a month ago.
Southern India Mills’ Association Chairman T. Rajkumar said that consumption of cotton by textile mills could be higher than estimated. Export demand for yarn and fabric is increasing, and with power cuts coming down in Tamil Nadu, the operation of textile mills has improved. Hence, the demand for cotton will be more.
The association expects consumption by textile mills to exceed 300 lakh bales this year.
Source: The Hindu