The Cotton Association of India (CAI), the apex trade body for the sector, has maintained the crop estimate for 2016-17 season at 341 lakh bales of 170 kg each in its latest estimates for January, same as that in the previous month. However, it expects the consumption of the fibre to increase marginally in the year ahead on pick-up in demand.

CAI expects cotton consumption to increase for the ongoing crop year to 295 lakh bales, against its previous estimate of 290 lakh bales.

“As the yarn prices and fibre prices are looking up, we expect better consumption in the days ahead. We see a pick-up in demand from the textiles sector and have revised the figures upwards marginally,” said Nayan C Mirani, CAI President.

The projected balance sheet drawn by the CAI estimated total supply for cotton season 2016-17 at 405 lakh bales. Considering the domestic consumption of 295 lakh bales as stated above, the total available surplus for the season works out to 110 lakh bales, CAI said in a statement. The imports are estimated to decline by 3 lakh bales to 19 lakh bales from 22 lakh bales last year, it said.

The pace of market arrivals has started picking up lately and is now approaching 2 lakh bales a day as the farmers are realising better price for their produce, CAI added.

Cotton futures contract for February on MCX ended marginally higher at ₹20,480 a bale.