Southern India Mills Association (SIMA) today asked the spinning mills to avoid panic buying, as cotton position both in domestic and global markets are very comfortable.

The cotton production in India for the season 2016-17 might be around 342 to 345 lakh bales as against 351 lakh bales estimated by the Cotton Advisory Board (CAB) and the cotton arrival as on March 20 was around 250 lakh bales as against 260 lakh bales arrived during the same period last year, SIMA Chairman, M Senthilkumar said in a release.

CAB has estimated the cotton imports as 17 lakh bales and felt that it might touch 30 lakh bales during the end of the season, if the present trend of import continued, he said.

Stating that the mill consumption might be around 295 lakh bales as against 303 lakh bales estimated by CAB as the average count becomes finer, he said the exports might be only around 40 lakh bales as against 50 lakh bales as estimated by CAB as the Indian cotton price was not currently attractive in the international market.

The exports contracted so far might be only around 30 lakh bales, he said adding that currently India has contracted for around 15 lakh bales of cotton imports from West Africa and the U.S.

Expressing confidence that the prices might ease once the Australian cotton arrival in May, Senthilkumar said that the cotton supply position in India is very much comfortable and therefore, suggested the mills to avoid panic buying, considering all these aspects.