Govt revises cotton output estimate to 39 mn bales for current marketing year

The government has revised its cotton production estimate for the current marketing year due to unseasonal rains and hail storms across the county from 40 million bales to 39 million bales. Cotton crop prospects adversely impacted particularly in the central zone, textile minister Santosh Kumar Gangwar said in a written reply to the Lok Sabha. One bale equals 170 kg.

The main cotton growing states include Rajasthan, Telengana, Andhra Pradesh, and Tamil Nadu. Total demand is estimated to be at 39 million bales in 2014-15, compared to 41.68 million bales in the previous season.

Late last month, Cotton Corporation of India chairman BK Mishra had mentioned that a smaller harvest was expected in the northern region as well as Gujarat. State-run Cotton Advisory Board (CAB) had in October projected a record harvest of 40 million bales for 2014-15, marginally higher than 39.8 million bales a year before.

According to the CAB, cotton exports are also projected to dip to 7 million bales this year compared with 11.79 million bales in 2013-14 on poor demand from top buyer China.

The Cotton Corporation of India (CCI) has so far procured 83 lakh bales at the minimum support price (MSP) against an expected procurement of around 90 lakh bales during the 2014-15 season.

But domestic cotton mills have been complaining to the government that the CCI is not releasing enough cotton in the market leading to a severe shortage of the raw material. (SH)

Cotton MSP was increased by the government by Rs 50 per quintal to Rs 3,750 for medium staple and to Rs 4,050 for long staple for 2014-15 season.

According to Gangwar, cotton exports from the country are under open general licence and being a cotton-surplus country, sufficient cotton is available for domestic mills.

On Textile Upgradation Fund Scheme (TUFS), the minister said that it has been continued for the 12th five year plan with an outlay of Rs 11,952.8 crore.