Indian cotton consumption estimated at 290 lakh bales, says CAI

The domestic consumption of cotton during the crop season 2016-17 that began on October 1, 2016, is estimated to be 290 lakh bales by the Cotton Association of India (CAI). The association has estimated the total cotton supply for the season at 404 lakh bales and according to its balance sheet, there will be an available surplus of 114 lakh bales.

The CAI, a representative of cotton traders, has placed the cotton crop for this season at 341 lakh bales of 170 kgs each, which is 1 per cent more than last year’s 337.75 lakh bales.

The body also expects the cotton arrival to take a hit this season as farmers are holding back seed cotton.

“The arrivals of cotton during the ongoing 2016-17 crop year are estimated to be lower than those up to the same period last year due to holding back of seed cotton by farmers,” said the association in a statement.

However, MM Chockalingam, CMD(I/C) of CCI, said that due to above normal rains and favorable agro-climatic conditions, it is expected that yield will be better in comparison to previous year and production may increase by about 4 per cent to 351 lakh bales in comparison to 338 lakh bales of cotton season 2015-16.

“Total cotton consumption in the country is expected to increase to 313 lakh bales as against 312 lakh bales during the previous year,” added Chockalingam.