September 10, 2017
India’s cotton production for the 2016-17 season, ending this month, has been estimated at 345 lakh bales, four per cent higher than the previous season production of 332 lakh bales.
The global cotton production for the 2016-17 season has been estimated at 23.19 million tonnes, 10 per cent higher than previous season
production of 21.07 million tonnes, because of increased production in all the major cotton growing countries, according to B Lakshminarayana, Chairman of SIMA Cotton Development and Research Association here.
Though the global cotton consumption has been estimated at 24.74 million tonnes, two per cent higher than previous season’s 24.22 million tonnes, India’s consumption (including non-mill consumption) has been estimated at 312 lakh bales, marginally lower than previous season consumption of 315 lakh bales, he said in a his address to the 42nd Annual General Meeting of the Association, held here yesterday.
Stating that the global exports have been estimated at 8.1 million tonnes, higher than previous season exports of 7.7 million tonnes, he said that Indian exports during the season have come down to 60 lakh bales from previous season’s 69 lakh bales.
As far as the cotton season 2017-18 is concerned, both global production and consumption has been estimated marginally higher than
previous season, which have been estimated at 25.54 and 25.56 million tonnes respectively, an association release said today.
Global trade in cotton has been expected to be at the previous season level of about 8 million tonnes, Lakshminarayana said.
The Global stocks at the end of the season have been estimated at 19.62 million tonnes, marginally higher than previous season ending stock of 19.59 million tonnes.
The Minimum Support Price of fair average quality kapas of medium staple and long staple was increased by Rs.50 for 2016-17 season and MSP of medium staple and long staple was Rs.3,860 and Rs.4,160 per quintal respectively.
There was a recommendation to increase the MSP by Rs.160 for 2017-18 season and accordingly, MSP for the current season 2017-18 for medium staple and long staple would be Rs.4,020 and Rs.4,320 respectively, Lakshminarayana said.
As the 2015-16 season (Oct–Sept) average of Shankar-6 stood at Rs.36,978 per candy, 12 per cent higher than previous season average of Rs.33,159 per candy, the prices increased during 2016-17 season and the average during October to August worked out to Rs. 41,680 per candy, higher by 13 percent, he said
With comfortable cotton supply both in the domestic and international markets, the prices are anticipated to ease in the coming months, he said.