The CAI lowered its estimate for the cotton season 2015-16 and placed the same at 377.00 lakh bales of 170 kgs each, down by 1.5%.

PUNE: As the new cotton season begins from October 1, India is likely to carry one of the highest closing stock in the history, said industry body Cotton Association of India (CAI), while releasing its second estimate of cotton production for 2015-16 season.

The cotton year is from October to September as arrival of new cotton normally begins from October. The CAI lowered its estimate for the cotton season 2015-16 and placed the same at 377.00 lakh bales of 170 kgs each, down by 1.5% over the cotton production in the previous year. The CAI has also released its August estimate for the ongoing cotton season 2014-15 and retained the crop at 382.75 lakh bales of 170 kgs each.

"The projected Balance Sheet drawn by the CAI estimated total cotton supply for the season 2015-16 at 467.65 lakh bales while the domestic consumption is estimated at 325.00 lakh bales thus leaving an available surplus of 142.65 lakh bales," stated a CAI release.

"The country is set to witness one of the highest closing stocks in the history, as at the close of the cotton season 2014-15," the release noted.

With prices ruling much below the government mandated minimum support price (MSP), farmers and the industry is waiting for the government to announce market intervention to support cotton prices.