The Cotton Advisory Board (CAB), which met in Mumbai recently, has estimated cotton production during 2012-13 (October 2012 to September 2013) to be 340 lakh bales as against the earlier estimate of 330 lakh bales.
Imports are expected to be 25 lakh bales (it was 12 lakh bales in 2011-12). Consumption is also going up and is likely to be 267 lakh bales.
The CAB estimated at its meeting in January this year that exports this season would be 80 lakh bales. At the meeting on Wednesday, it expected exports to be 81 lakh bales this year.
According to an industry source, cotton arrivals are better than expected, especially from Andhra Pradesh and Maharashtra. Hence, the increase in production estimates by the CAB. Several textile mills in the south have started buying African cotton and so imports are also expected to go up. Meanwhile, cotton yarn production, consumption and exports are on the rise. The industry is on a recovery path.
Though there are reports that nearly 90 lakh bales of cotton is registered for exports, the entire quantity may not be exported as the rupee is getting stronger and domestic prices are declining, the source said. The Southern India MillsΆ Association has also said in a release that the release 2.5 lakh bales of cotton in the domestic market will bring stability in prices.