Global Economy

Indian can export 50 lakh bales of cotton, says CAI

The fall in cotton prices below the government set level of minimum support price giving excellent export parity to Indian cotton, the trade is confident about achieving export target of 50 lakh bales of 170 kg each.

“At present the current rate of 29mm (milimetre) good quality cotton is Rs. 42,000 per candy in the spot trade, which was Rs. 41,000 per candy during same period of previous year. At this rate Indian cotton is having good parity for export. If this rate continues for another 45 days, we will achieve our export target of 50 lakh bales very easily,” said Atul Ganatra, president, Cotton Association of India (CAI).

“As on today our Indian cotton quality wise rate is ruling from Rs.40,000 to Rs.42,000 per candy for 27mm to 29 mm cotton. At this rate Indian cotton is the cheapest cotton available in the world due to which, there is a good demand for Indian cotton from across the world. Since past many years, India has been a net cotton exporting country,” said Ganatra of CAI.

This year, cotton sowing in India has taken place in around 123 lakh hectares. But unfortunately the rain has not supported and in September month rain was very less and entire month of October was dry. Particularly, states like Gujarat had rain deficit of 28%. There was rain deficit in states like Karnataka, Telangana and Maharashtra too.

Due to shortage of rain, this year there will be no third and fourth picking in most of these cotton growing states. In regular course in India, farmers take 4 to 5 pickings. The government of Maharashtra and Telangana had given instructions to the farmers to remove the cotton plants by 31st December to avoid Pink Ball worm problems.

Because of this there will be no third, fourth or fifth picking in India, and there will be a big drop in Indian cotton crop figures this year.

As per the Cotton Association of India crop committee’s last meeting held on 1st March 2019, the committee has estimated Indian crop size of 328 lakh bales of 170 kgs against previous month’s estimate of 330 lakh bales. Compared to last year’s 365 lakh bales, Indian crop sie in the current year will be lower by 37 lakh bales, down by 10.13%.

Against this year’s crop size of 328 lakh bales upto February 28, 2019, 213.42 lakh bales of cotton have arrived in the market, which is 65% of the total crop size. The current estimate of CAI is lower by 8.6% than its first estimate of 348 lakh bales issued in October.


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