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The Cotton Association of India (CAI) released its March 2023 report on cotton output and other trade activities. The report stated that cotton production has been reduced to 303 lakh bales in March 2023, down from 313 lakh bales in the February 2023 report. Cotton output was projected at 321 and 330 lakh bales in the February and January 2023 reports, respectively. Last year, production was finally estimated at 307 lakh bales after multiple downward revisions.
CAI has announced that production in north India, including lower Rajasthan, may decrease to 41 lakh bales from 50.27 lakh bales. Central India, the largest production area, may produce 186 lakh bales, compared to 171.30 lakh bales last year. State-wise production projections are Gujarat at 92 lakh bales (last year at 76.30 lakh bales), Maharashtra at 75 lakh bales (unchanged from last year), and Madhya Pradesh at 19 lakh bales (down from 20 lakh bales last year). South India's production is projected to be 69.50 lakh bales, lower than the 80.40 lakh bales produced last year.
CAI's report estimated a supply of 229.02 lakh bales until March 2023, comprising 190.63 lakh bales of arrivals, 6.50 lakh bales of imports, and 31.89 lakh bales of carryover stocks. It estimated the first six months' supply at 149 lakh bales, while export shipments for March were estimated at 10.50 lakh bales.
For the full season, cotton supply was estimated at 349.89 lakh bales until September 2023. This figure consists of an opening stock of 31.89 lakh bales, the current year's crop of 303 lakh bales, and imports of 15 lakh bales. CAI estimated domestic consumption at 311 lakh bales, with exports unlikely to exceed 25 lakh bales.
Fibre2Fashion News Desk (KUL)