Cotton Association of India, the apex trade body for the fibre crop in the country, has revised upwards its crop projections by 2 lakh bales of 170 kg each from its earlier estimates for the crop year 2024-25 ending September. The trade body also estimates the consumption to be higher by two lakh bales, based on the emerging market trends.
Pertaining to the feedback from its various member associations in the key cotton producing states, CAI in its latest projections has pegged the output to be around 304.25 lakh bales of 170 kg each, about 2 lakh bales higher than its earlier projections. This is mainly on account of higher than expected output in Telangana, where the projections are revised upwards by 6 lakh bales.
Output in Telangana
Production in Telangana is now seen to be higher by 6 lakh bales at 42 lakh bales, while in North India, the output is expected to decline by 3.5 lakh bales. Total supplies till end December were estimated at 176.04 lakh bales of 170 kg each including the pressing figures of 133.85 lakh bales, imports of 12 lakh bales and opening stock of 30.19 lakh bales. Consumption till end-December stood at 84 lakh bales, while exports of 7 lakh bales are estimated to have been taken place. December-end stocks are estimated at 85.04 lakh bales.
Atul Ganatra, chairman, CAI said the consumption estimate for 2024-25 season has been increased by 2 lakh bales to 315.00 lakh bales of 170 kgs each on pick up in demand. The cumulative market arrivals of cotton as per the data collated by CAI stood at over 156 lakh bales as on January 22, exceeding half of the estimated crop size of 304.25 lakh bales.
The daily market arrivals are over 1.5 lakh bales, with large arrivals in Maharashtra and Gujarat. Arrivals are seen tapering in Telangana and Karnataka among other states.
Prices range-bound
Ramanuj Das Boob, a sourcing agent in Raichur said the prices of cotton are range-bound and hovering in the range of ₹53,000-54,000 per candy of 356 kgs. The demand has not picked up as mills are still buying on a need basis, covering their requirement and stocking for only two to three months, Boob said.
With the Cotton Corporation of India (CCI) emerging as the biggest buyer and procuring a major chunk of the market arrivals, mills are aware of the fact that the state-run entity is holding huge stocks and not seen to be in a hurry to buy and stock the fibre crop.
Boob said the exports of cotton are taking place mainly to Bangladesh, but not in full speed. “Cotton from Maharashtra is mainly going to Bangladesh,” he said.
Of the total market arrivals of 156 lakh bales, about half the quantity is estimated to have been procured by CCI.
