Business Bureau :
THE Cotton Association of India (CAI) on Thursday estimated cotton exports to increase by 20 per cent to 60 lakh bales in the 2020-21 season that begins in October, mainly due to higher international prices. In 2019-20 season, cotton exports stood at 50 lakh bales, it said in a statement. “We are expecting the exports to go up by 10 lakh bales this season to 60 lakh bales due to higher international prices of cotton compared to the Indian commodity. The average price difference between the Indian and the international cotton was ruling between 10 to 13 cents a month before, which is now near about 4 to 5 cent,” CAI President Atul Ganatra said. In the international market, cotton prices are generally in US dollars.
The export shipments up to March 31, 2021 are pegged at 43 lakh bales. Besides, CAI has slightly increased its cotton crop estimate for the 2020-21 season to 360 lakh bales due to higher production in the north zone. The quantum is higher than the association’s projection in February. Cotton production for 2020-21 is estimated to be 360 lakh bales due to increase in output by 1,50,000 bales in north zone -- that is 50,000 bales each in Haryana, Upper Rajasthan and Lower Rajasthan, as per the statement.
The total cotton production for the 2019-20 season stood at 360 lakh bales. The total cotton supply for October 2020 to March 2021 period is estimated at 459.26 lakh bales. This consists of arrivals of 326.76 lakh bales, imports of 7.50 lakh bales and the opening stock estimated at the beginning of the season. Further, CAI has projected cotton consumption at 165 lakh bales for 2020-21 season.