CAI revises cotton output estimate at 360 lakh bales for 2017-18

By

Maverick Martins

Published
Apr 11, 2018

The Cotton Association of India (CAI) has lowered the estimation of cotton production in the country from 362 bales to 360 bales for the current season 2017-18.
 

In a statement, CAI has said that the overall drop was due to lower production of one lakh bales each in the states of Maharashtra and Karnataka in the current cotton season (October 2017-September 2018).
 
India, the world’s second-biggest cotton exporter is looking to treble shipments of the fibre to China next year as Beijing seeks to replenish stockpiles and imposes a 25 percent import tax on cargoes from the United States.

The drop in production is a cause of concern for the cotton industry in India and it needs to find a way to increase its production capacity to gain a larger market share in China.
 
CAI has estimated total cotton supply for the season at 410 lakh bales of 170 kgs each, which includes the opening stock of 30 lakh bales at the beginning of the season and the imports which the CAI has retained at 20 lakh bales as in the previous month.
 
The association has estimated domestic consumption at 324 lakh bales, while the exports for the season are estimated at 65 lakh bales, which is higher by 5 lakh bales than the its estimate of the previous month as the country is now witnessing a good export demand.