The Cotton Advisory Board (CAB), which met in Mumbai on Thursday, has revised upwards the cotton export estimates for 2009-10 (October-September).
Cotton exports this year are expected to be 80 lakh bales as against the earlier estimate of 55 lakh bales. Since October 2009, about 79.5 lakh bales of cotton were registered with the Office of the Textile Commissioner for export and nearly 54.5 lakh bales were shipped. The CAB has also revised the cotton production estimates for this year. Production was earlier expected to be 295 lakh bales. Based on the actual pace of arrivals, this was revised to 292 lakh bales on Thursday.
The closing stock for this year was estimated at 40.50 lakh bales as against the earlier estimate of 68.50 lakh bales. According to K. N. Viswanathan, Secretary of the South India Cotton Association, the government should take measures to ensure that exports do not exceed 80 lakh bales. “Otherwise, it will create a tough situation on the prices front in the domestic market.” During the last two months, cotton prices had gone up by 35 per cent.
Chairman of the Southern India Mills' Association J. Thulasidharan said the decline expected in closing stock was a matter of concern.
Prices were expected to firm up further and this would affect the mills.
