The country's cotton production in 2010-2011 crop marketing year that started in October is estimated to be around 35.7 million bales, almost 16% more than last year, the latest estimate by the Cotton Association of India (CAI) showed.

The estimated total supply during the year, which included 5.5 million bales of opening stock is expected to be around 15.25 million bales, almost 10 million bales more than current allowable exports of 5.5 million bales. Officials said even after maintaining a closing stocks similar to last year, this year as well, the exportable surplus should have been 9.75 million bales.

The arrivals as on October 31, 2010 are placed at 2.55 million bales, the CAI said. "The cotton crop looks promising for this year. Though arrivals started late, they have now caught up with the figures of last year and in fact have overtaken the level on the same date last year," the association said.

Prices are firm due to strong demand domestically from the textile sector and because of international cotton prices being high, it added.

FinancialExpress