March 24, 2023

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Cotton market arrivals down 15% till Nov-end as farmers hold back produce

Cotton growers are witnessed keeping again their develop in anticipation of better charges. This is reflected in the market arrivals of cotton, which are down by about 15 for each cent until November conclude in excess of the similar period of time previous yr.

In its latest estimates, the Cotton Association of India (CAI), the apex trade system, has pegged the market arrivals until November conclude at 77.76 lakh bales of 170 kgs every single as in comparison to the similar period of time previous year’s ninety one.57 lakh bales.

Atul S Ganatra, President, CAI instructed BusinessLine that apart from farmers keeping again their develop anticipating better charges, the unseasonal rains during Oct and November that impacted the pickings has also impacted the market arrivals.

For the cotton promoting time 2021-22 starting up Oct 1, CAI has pegged the crop size at 360.13 lakh bales, better than the earlier year’s 353 lakh bales. CAI sees domestic demand flat at previous year’s degree of 335 lakh bales.

In its month to month equilibrium sheet for November 2021, the CAI has estimated overall supply at 154.76 lakh bales of 170 kgs, reduced than the similar period of time previous year’s 201.07 lakh bales.

Also browse: In 2022, cotton charges may drop but palm oil will scale new highs

The supply as of November-conclude this yr consisted of the market arrivals of 77.76 lakh bales (ninety one.57 lakh bales in the similar period of time previous yr), imports of 2 lakh bales (2 lakh bales) and opening stocks as of Oct 1, 2021 at seventy five lakh bales (107 lakh bales as of Oct 1, 2020).

CAI mentioned the use during Oct-November this yr stood reduced at fifty five.eighty three lakh bales (57.50 lakh bales) when exports during the period of time were also down at seven lakh bales (twelve lakh bales). The November conclude stocks estimated by CAI stood reduced at ninety one.ninety three lakh bales (131.57 lakh bales). Stocks held by mills in their godown is estimated at 56 lakh bales (40 lakh bales). On typical, mills maintain sixty-working day stocks in their godowns, CAI mentioned.

The Cotton Corporation of India, Maharashtra Federation, multinational organizations, ginners, traders and exchanges are estimated to have a overall inventory of about 35.ninety three lakh bales (97.29 lakh bales) as of November conclude.

Total inventory held by spinning mills and stockists like the inventory of cotton offered but not lifted as of November thirty will work out to ninety one.ninety three lakh bales (131.57 lakh bales), CAI mentioned.