COMMODITY
India's cotton crop production may fall 7.87% to 343 lakh bales in 2018-19 season: CITI
Apr-16-2019

Confederation of Indian Textile Industry (CITI) has said that India's cotton crop production may fall 7.87% to 343 lakh bales (of 170 kg each) in the 2018-19 season. It said the drop will be mainly due to drought in many cotton-growing regions. CITI Chairman Sanjay Jain has said the cotton crop output for the previous season ended September 2018 was 370 lakh bales, adding that the worst output in the past 12 years stood at 348 lakh bales, higher than the current season's projection of 343 lakh bales.

Jain said drought in many cotton-growing regions of Gujarat, a few regions of Maharashtra and a few areas in other cotton growing states has affected the yield. He said though they have a smaller crop size this year in comparison to last year, the cotton supply position is comfortable with a big ending stock of 40 lakh bales. He further said ‘Thanks to a big opening stock, smaller exports and large imports, the production deficit is well covered. CCI (Cotton Corporation of India) has also started selling its stock, which will further increase liquidity in the cotton market.’ Jain said as far as crop situation for the next year is concerned, the highly remunerative kapas (cotton) prices during the current year and the monsoon projection would induce the Indian farmers to prefer to grow more cotton.

The CITI chairman also said the International Cotton Advisory Committee in their report for April 2019 have projected a 6 per cent rise in global production for 2019-20 at 27.6 million tonne and a higher ending stock for 2019-20. Due to these factors, he added that cotton prices are likely to remain steady and range-bound. Early monsoon and import arrivals in India may create downward pressure on cotton prices from June 2019.

  RELATED NEWS >>