CAI cuts cotton crop size to 298.65 lakh bales

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Potential declines in production in the major growing regions of Maharashtra and Telangana will further reduce cotton production in India for 2022-23.

In its April 2023 crop estimate, released on Thursday, the Cotton Association of India (CAI) trimmed the size of India’s cotton harvest to 298.65 bales, the lowest since 2008-09 (290 bales). The latest revision of the crop below The CAI estimate for March is 313 lakh bales.

As per CAI’s forecast, cotton production in Maharashtra and Telangana will decrease by 2 bales each as compared to the previous estimate. Also, it estimated production decline in Tamil Nadu by 0.50 lakh bales and Orissa by 0.15 lakh bales.

Also read:Cotton: for a change

Of the 298.65 lakh bales expected, 224.17 lakh bales (75 per cent of the crop) have already reached the markets till 30th April 2023. CAI reduced the export of cotton The forecast is down to 20 lakh bales for this year, which is less than half of the 43 lakh bales that were exported last year. So far this year, 12 bales have been shipped from India.

Cotton prices hovered around 60,800 rupees per 356 kg candy of 29mm cotton gin variety. Prices have been corrected by 3000 rupees per dessert in the past month. Raw cotton prices range from Rs 7,700 to Rs 7,965 per quintal in the APMC Rajkot Market.

CAI has kept its cotton import forecast at 15 lakh bales, more than the 14 lakh bales recorded last year. According to data from CAI, 7 lakh bales have reached Indian ports so far this year.

Also read:ICAC. Cotton arrivals in India rise, prices likely to fall: ICAC

Cotton consumption for the year is estimated at about 311 bales, compared to 318 bales in the previous year. Total cotton availability is expected to be 345.24 bales, which includes opening stock of 31.89 bales and imports of 15 bales, as well as a crop volume of 298.35 bales.

The expected domestic consumption includes 280 bales for mills, 15 bales for small industries, and about 16 bales as non-textile consumption.

The carry-over stock at the end of the season is expected to be 14.24 lakh bales.