Cotton production is estimated to be lower by over five per cent at 334 lakh bales (of 170 kg each) during the current season that began this month.
The drop from 353 lakh bales is mainly due to lower production in Gujarat, according to the Cotton Advisory Board. A.B. Joshi, Textile Commissioner, said that scanty rainfall and farmers shift to other remunerative crops in Saurashtra, the main cotton growing region in Gujarat, led to 24 per cent drop in area to 24 lakh hectares.
Production in the region is anticipated to dip 29 per cent to 85 lakh bales (120 lakh bales).
Domestic demand
Overall, production in the northern region will fall four per cent to 58 lakh bales (60 lakh bales), while central zone is expected to register a drop of 14 per cent at 182 lakh bales (212 lakh bales).
In contrary, cotton production in the southern region is expected to increase 16 per cent to 89 lakh bales even as output in Karnataka and Tamil Nadu shrink 14 per cent and 23 per cent, respectively. Andhra Pradesh, the bright spot in the southern region, will register a growth of 29 per cent at 72 lakh bales. Domestic demand has been pegged higher by five per cent at 230 lakh bales against 218 lakh bales registered last year.
EXPORTS TO HALVE
The total supply including imports and carryover stocks will dip nine per cent to 375 lakh bales (411 lakh bales). Though the demand from the textile and non-mill consumption is expected to remain stable at last year’s level, exports may almost halve to 70 lakh bales from 129 lakh bales due to weak demand from China. China accounts for nearly 65 per cent of the total shipments made from India, said Joshi. Moreover, the high global carryover stock of 13.78 million tonnes will also exert pressure on demand for cotton produced in India, he added. The Directorate General of Foreign Trade has issued a notification designating seven regional authorities of DGFT at Ahmedabad, Bangalore, Chennai, New Delhi, Hyderabad, Kolkata and Mumbai to issue registration certificate (RC) for exports. Exporters can apply for one RC at a time for a maximum of 10,000 bales. New exporters can apply for 1,500 bales, it said.