Cotton production for the 2015-2016 (October to September) season is estimated to be 365 lakh bales, which is about 15 lakh bales less than the previous season.
According to a press release from the Office of the Textile Commissioner, area of the crop has come down in States such as Karnataka and Maharashtra and production is expected to be lower in some States.
The first meeting of the Cotton Advisory Board for the current season was held in Mumbai on Tuesday. According to the provisional estimate, the opening stock for the current season is estimated to be 52 lakh bales and imports to be 12 lakh bales. Consumption by textile mills is expected to be 312 lakh bales (non-SSI and SSI sectors). During the previous season (October 2014 to September 2015), consumption by the mills was 305 lakh bales. Exports this year are likely to be higher at 68 lakh bales. It was 57.72 lakh bales last season.
M. Senthil Kumar, Chairman of Southern India Mills’ Association, said that cotton consumption by the domestic mills was stagnant at about 25 lakh bales for the last seven to eight months because of the drop in demand for yarn.
However, there are indications of improvement in yarn import by China. Export of yarn and fabric is expected to pick up in the coming months. Prices of yarn is also stable in the recent weeks. Hence, the demand and consumption by mills will go up in the coming months. K. N. Viswanathan, Vice-President of Indian Cotton Federation, said the CAB estimate of lower production and improvement in textile mill consumption for the current season will not impact cotton prices as the mills are not buying much now.