Home Cotton India cotton to decline to 343 lakh bales in FY19

India cotton to decline to 343 lakh bales in FY19

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Indian cotton crop production may fall 7.87 percent to 343 lakh bales (170 kg each) in the 2018-19 season, mostly due to drought in many cotton-growing areas.

Mr Sanjay Jain, chairman, Confederation of Indian Textile Industry (CITI) told that the cotton crop output for the previous season ended September 2018 was 370 lakh bales, adding that the worst output in the past 12 years stood at 348 lakh bales, higher than the current season’s projection of 343 lakh bales.

The local textile industry body based the projections on real data collected from cotton-growing areas for the October-September 2018 crop season.

Mr Jain said drought in many cotton-growing areas of Gujarat, a few areas of Maharashtra and a few areas in other cotton growing states have affected the yield.

“CITI has revised the cotton crop estimates for 2018-19 based on the actual data collected from the cotton-growing areas in the country to 343 lakh bales of 170 kg,” the body said.

He said though we have a smaller crop size this year in comparison to last year, the cotton supply position is comfortable with a big ending stock of 40 lakh bales.

He also said “Thanks to a big opening stock, smaller exports and large imports, the production deficit is well covered. CCI (Cotton Corporation of India) has also started selling its stock, which will further increase liquidity in the cotton market.”

Jain said as far as crop situation for the next year is concerned; the high remuneration cotton rates during this year and the monsoon projection would induce the Indian farmers to preferably grow more cotton.

The chairman of CITI also said the International Cotton Advisory Committee in their report for April 2019 have projected a 6 per cent rise in global production for 2019-20 at 27.6 million tonne and a higher ending stock for 2019-20.

Mr Jain said ““Due to these factors, cotton prices are likely to remain steady and range-bound. Early monsoon and import arrivals in India may create downward pressure on cotton prices from June 2019.”

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