India’s cotton stock to reduce by four lakh bales in May 2021: CAI
As per a recent report on crop estimates, Statistics Committee of Cotton Association of India (CAI) expects total cotton stock during the month of May to reduce by four lakh bales to 356 lakh bales of 170 kg each from previously expected 360 lakh bales.
The CAI expects total cotton stock in the North zone to remain static at 65.50 lakh bales while stocks in the Central zone is expected to reduce by one lakh bales to 194 lakh bales down from 195 lakh bales estimated during last month.
Cotton stock in Gujarat is also expected to reduce by one lakh bales while stock in Maharashtra and Madhya Pradesh is expected to remain at the same level as previous month.
CAI expects cotton stock in the Southern zone to reduce by three lakh bales to 91.50 lakh bales.
Based on the data provided by Telengana Cotton Millers & Traders Welfare Association, cotton stock in Telangana is expected to decline by three lakh bales whereas cotton crop stock in Andhra Pradesh, Karnataka and Tamil Nadu is likely to remain at the same levels as estimated previously. There will also be no change in the cotton stock in Orissa.
Cotton consumption increases to 220 lakh bales
From October 2020 to May 2021, CAI’s total supply of cotton bales was 473.44 lakh cotton bales. These supplied included the cultivation of 340.19 lakh bales upto May 31, 2021, import of 8.25 lakh bales and opening stock of 125 lakh bales.
CAI estimates cotton consumption from October 2020 to May 2021 have reached 220 lakh bales while exports till May 31, 2021 was 58 lakh bales. By the end of May 2021, CAI had 195.44 lakh bales of cotton stock with textile mills and 105.44 lakh bales of stock with CCI, Maharashtra Federation and others.
Export estimates increased
Till the end of cotton season that is September 30, 2021, CAI estimates supply of 491 lakh cotton. Supplies included opening stock of 125 lakh bales, cotton crop for the season at 356 lakh bales and import of 10 lakh bales.
For the entire year upto September 30, 2021, an estimated 325 lakh cotton bales were consumed inIndia. This is 10 lakh bales more than the cotton consumed in previous year on account of brisk demand for cotton yarn despite lockdown and disruptions.
Encouraged by this increase, CAI has increased exports estimate for the season from previous estimate of 70 lakh bales to 72 lakh bales. During 2020-21, CAI estimates India’s cotton production reduced to 356 lakh bales from previous estimate of 360 lakh bales made during the last month
Cotton stock with mills and others
The country’s cotton imports too are expected to fall to 10 lakh bales from previous estimate of 11 lakh bales. Till May 31, 2021, India imported about 8.25 lakh bales while exports increased by 2 lakh bales.
Currently, cotton mills in India have around 90 lakh cotton bales in godowns. This is an average stock for 101 days. On the other hand, CCI, Maharashtra Federation, MNCs, Ginners, Traders, MCX etc, estimated to have a total stock of about 105.44 lakh bales.
In all, spinning mills and stockist have 44 lakh cotton bales with them. As on September 30, 2021, the committee has 94 lakh cotton bales.
