Cotton final stock hits a 5-yr low of 15 lakh bales

Cotton final stock hits a 5-yr low of 15 lakh bales

by admin- Thursday, September 12th, 2019 07:45:27 AM

But 2019-20 season appears promising amidst signs of a larger crop length
The closing stock of cotton on the end of the 2018-19 season on September 30 may be the bottom in at the least five years, at 15 lakh bales (of 170 kg each). The Cotton Association of India (CAI) has stated the small crop length and very tight cotton balance sheet for the smaller last inventory.

However, cotton stakeholders stated that the general crop situation for the 2019-20 season appears promising and points to a better crop. “There might be no effect on the availability of cotton even if the remaining inventory appears low. This is due to the fact in North India and in other cotton growing regions, the cotton crop seems good and promising,” stated Pawan Kumar Nagor, Treasurer, Indian Cotton Association.

He additionally stated that arrivals of the new crop in Punjab and Haryana have started out. “The crop circumstance is excellent and we accept as true with this year the harvest can be better than final 12 months.”

While there is no official estimate on the crop length for 2019-20, the overall sowing and the monsoon progress inside the cotton growing region has brightened the prospects of the cotton crop.

At its assembly in Mumbai, the Cotton Association of India (CAI) retained its cotton crop estimate for the yr 2018-19 at 312 lakh bales, sharply down from the 365 lakh bales mentioned inside the preceding yr.

The deliver-over stock for the subsequent season is expected at 15 lakh bales. It stood at 67 lakh bales in 2014-15, forty four lakh bales in 2015-sixteen, 30 lakh bales in 2016-17 and approximately 28 lakh bales final 12 months.

Imports visible at 29 lakh bales
Total cotton deliver for the duration October 2018 to August 2019 is projected at 363 lakh bales, which includes the outlet stock of 33 lakh bales, market arrival of 307 lakh bales upto August 31, and imports of about 23 lakh bales upto August 31. Total supply via the end of the season in September 2019 might be approximately 374 lakh bales.

Atul Ganatra, President, CAI, commented that the imports on the stop of the season on September 30, as expected by way of the CAI, may be 29 lakh bales, approximately 2 lakh bales lower than the sooner estimate however 14 lakh bales better than the previous 12 months’s import estimate of 15 lakh bales.

The Cotton Association of India has predicted consumption for the duration of the months of October 2018 to August 2019 be at 288.Seventy five lakh bales, while export shipments of cotton (excluding cotton waste) as much as August 31, 2019 are estimated to general 43 lakh bales.

The CAI has pegged domestic cotton consumption in 2018-19 at 315 lakh bales, while exports (except cotton waste) are envisioned at forty four lakh bales, down 25 lakh bales from the 69 lakh bales of exports anticipated final 12 months.

CAI clarified that export of cotton waste was inadvertently included in its export estimate final month. “This mistake has now been rectified and the export estimate has now been diminished by means of 2 lakh bales to reach on the export estimate of best cotton (except cotton waste).”

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