The Committee on Cotton Production and Consumption has estimated the current cotton season (October 2021 to September 2022) to close with a stock of 45.46 lakh bales.
At a meeting held on Wednesday, the Committee estimated the total consumption by textile mills to be 329 lakh bales, including 305 lakh bales by non-SSI mills, and exports at 40 lakh bales. The production is expected to be about 340 lakh bales. As against a total supply of 430.46 lakh bales (including opening stock and imports), the demand is likely to be 385 lakh bales.
Atul S. Ganatra, president of Cotton Association of India, said with cotton prices reigning high, spinning mills are making losses and many in the South have decided to close the mills for two days a week.
However, Ravi Sam, chairman of Southern India Mills’ Association, urged the government to revisit the estimates as consumption by non-SSI textile mills will be higher at 325 lakh bales. He contended that with high demand, the mills are operating at full capacity and cannot afford to stop or slowdown. Similarly, exports are likely to be higher as already more than 26 lakh bales have been shipped this season. “After the Committee’s meeting, cotton prices are said to have increased by ₹3,000 a candy. Even at this price, the mills are not getting cotton. Farmers have already sold the cotton with them. Hence, the government should immediately permit duty-free cotton of about 40 lakh bales,” he said.
