India will carry one of the largest closing stocks of cotton in its history when the new season begins on October 1, according to the Cotton Association of India (CAI).

“The projected balance sheet drawn by the CAI estimated total cotton supply for the season 2015-16 at 467.65 lakh bales (of 170 kg each), while the domestic consumption is estimated at 325 lakh bales, thus leaving an available surplus of 142.65 lakh bales,” said an official statement on Tuesday.

Opening stock at the beginning of the 2014-15 season stood at 58.9 lakh bales (lb), according to the CAI data and 52.58 lb the year before.

The industry body highlighted the stock situation while releasing its second estimate for cotton output in the 2015-16 season (October to September) and has revised expected production to 377 lb. The figure is 1.5 per cent lower than the expected output of 382.75 lb, according to the CAI’s August estimate during the current season.

Production in 2014-15 is estimated to have declined in key States such as Gujarat and Maharashtra but did register an increase in Andhra Pradesh and Telangana.

Output in Gujarat, the country’s largest cotton growing State, likely declined to 108 lb from 129.25 lb in 2013-14. Production fell to 78.5 lb from 87 lb earlier.

Production in Gujarat is estimated to slide further in 2015-16 to 103 lb in Gujarat, but Maharashtra is likely to record an output of 85 lb.

Agriculture Ministry sowing data point out that area under the fibre all over India has declined by 8.4 per cent this Kharif season to 115.2 lakh hectares (lh) as of September 24, from 125.75 lh at the same time in 2014-15.

With cotton prices having slid below the Centre-mandated minimum support price last season, government agencies such as the Cotton Corporation of India procured about 87 lb.

Related Topics