INDIA: CAI retains 2019-20 cotton crop estimate at 354.5 lakh bales

PUNE: Cotton Association of India (CAI) has released its December estimate of the cotton crop for the season 2019-20 beginning from 1st October 2019. The CAI has retained its cotton crop estimate for 2019-20 at 354.50 lakh bales of 170 kgs. each i.e. at the same level as in the previous estimate.

The CAI has reduced its cotton crop estimate of the Northern Zone by 2 lakh bales from its previous month’s estimate i.e. 61 lakh bales as compared to 63 lakh bales estimated earlier since there is a reduction of 2 lakh bales in the cotton crop estimate of Lower Rajasthan compared to that of the previous month.

A release from CAI said, "However, there is an increase of 2.00 lakh bales in the cotton crop estimate of Maharashtra State compared to the estimate made in the last month as migration of cotton crop from Maharashtra to the neighbouring state is not likely to happen this year due to the participation of CCI in the market.

The total cotton supply estimated by the CAI during the months of October 2019 to December 2019 is 155.89 lakh bales of 170 kgs. each which consists of the arrivals of 125.89 lakh bales upto 31st December 2019, imports of 6.50 lakh bales upto 31st December 2019 and the opening stock estimated by the CAI at 23.50 lakh bales at the beginning of the season."

Further, the CAI has estimated cotton consumption during the months of October 2019 to December 2019 at 78 lakh bales of 170 kgs. each while the export shipment of cotton estimated by the CAI upto 31st December 2019 is 10 lakh bales of 170 kgs. each. Stock at the end of December 2019 is estimated by the CAI at 67.89 lakh bales including 30.89 lakh bales with textile mills and remaining 37 lakh bales with CCI and others (MNCs, Traders, Ginners, etc.).

"The yearly Balance Sheet projected by the CAI estimated total cotton supply till end of the cotton season i.e. upto 30th September 2020 at 403 lakh bales of 170 kgs. each (i.e. at the same level as estimated in the previous month). Total cotton supply consists in the Opening Stock of 23.50 lakh bales at the beginning of the cotton season on 1st October 2019, crop for the season estimated at 354.50 lakh bales and imports estimate," the release said.