CAI ups cotton estimate to 31.8 million bales
NEW DELHI : The Cotton Association of India (CAI) released its final estimate of crop production for the 2022- 23 (October-September) season and pegged it slightly higher at 31.8 million bales (1 bale=170 kg) from its previous estimate of 31.1 million bales in July, and initial estimates of 34.4 million bales. This is against the government’s third advance estimate of 34.3 million bales for the 2022-23 season and the 2021-22 season industry production estimate of 29.9 million bales.
The upward revision in estimates has been done due to a production increase from the previous estimates for Punjab (25,000 bales), Gujarat (241,000 bales), Maharashtra (71,000 bales), Telangana (50,000 bales), Andhra Pradesh (140,000 bales), Karnataka (150,000 bales), Tamil Nadu (45,000 bales) and Rajasthan (50,000 bales). CAI said the estimate is based on the outcome of its crop committee meeting on 7 October and the changes made in the state-wise cotton pressing (cotton production) estimates compared to those estimated previously based on the data available from various trade sources, upcountry associations and other stakeholders.
Traders and industry participants pointed to a huge difference between the estimates of CAI and the government for the 2022-23 cotton season as farmers reportedly held back their produce expecting better prices like last year. Prices of cotton in the 2021-22 season exceed ₹100,000 a candy (1 candy=365 kg).
In September, cotton was being traded in the range of ₹59,500-63,750 per candy in key markets of Rajasthan, Maharashtra, Telangana and Andhra Pradesh, and ₹60,900 a candy on the Multi Commodity Exchange. However, growers brought more cotton between 1 March and 30 September as they feared prices may fall.
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