Ahmedabad, Sept. 11 The closing stock of cotton for the current year ending September 30 will be almost double at 71.50 lakh bales (of 170 kg) each against the previous year’s 35.50 lakh bales, according to estimates of the Cotton Advisory Board.
“The main reason for this high closing stock is that exports this year have been one-third of what they were last year. From 88.50 lakh bales last year, the highest exports in the last four years, they fell to 35 lakh bales this year, due to a mismatch between domestic and international prices as well as the economic gloom,” said a member of the Ahmedabad Cotton Merchants Association.
Imports, on the other hand, increased from 6.38 lakh bales to 10 lakh bales.
The production and consumption both decreased proportionately. While the production decreased from 307 lakh bales in August 2008 to 290 lakh bales in August 2009, the mill, small mill and non-mill consumption excluding export decreased from 236.88 lakh bales to 229 lakh bales. The overall dip in supply of cotton for the current year was recorded at 335.50 lakh bales from 360.88 lakh bales of last year.
But the season is not over, and a clear picture will emerge in October or November, he added.
Gujarat output
The total production of kharif cotton in Gujarat had been projected to reach 100 lakh bales at the beginning of the season, but due to the erratic rainfall, it is now being estimated to reach 90 lakh bales, said a member of Gujarat State Co-operative Cotton Federation Ltd.
“But this will happen if we get another good round of rainfall, we cannot assuredly say how much,” he said. The total area under cotton cultivation in Gujarat is around 25 lakh hectares, he added.
Source : Business Line