The Cotton Advisory Board will meet on August 23 to estimate the cotton production and consumption pattern in 2012-13 (October to September) and also the current cotton scenario in the country.
With the current season (2011-12) coming to an end, the textile mills are facing shortage of domestic cotton. Imported cotton, mainly from Africa, started coming in during the last few weeks and hence, prices have stabilised. But there is a concern about availability of quality domestic cotton.
In the previous meeting, the board estimated the closing stock for this year to be 25 lakh bales. However, consumption by textile mills had increased by nearly 10 lakh bales and exports by 15 lakh bales, compared to the April assessment of 232 lakh bales consumption and 115 lakh bales exports.
The textile industry was already feeling the impact of almost nil closing stock for the year, says chairman of Southern India Mills’ Association S. Dinakaran.
The cotton that was available in the market now was not of the best quality and this had resulted in mills facing nearly 15 per cent production loss and wastage. However, prices of cone yarn, which is used by the weaving units, have increased by only Rs. 5 to Rs. 20 a kg.
With deficient monsoon, arrival of cotton at the beginning of next season was expected to be delayed. This could lead to more imports.
“We need to have at least a month’s consumption as stock in hand,” he said.
Industry sources said that during the new season, the Government should not have any restriction on cotton imports or exports.
The market would be able to handle the demand and supply.