Indian Cotton Production to Decline
July 14, 2016 The Cotton Advisory Board of India has revised its estimate for this year’s cotton supply and demand situation in India.
The provisional estimate, released July 13, has put India’s crop production to be at its lowest total in five years since the crop year 2011-12.
This year, India is estimated to produce 33.8 million bales (170 Kgs each), which is significantly lower than reported production in the past two seasons. During the 2013-14 year, India produced 39.8 million bales during the 2013-14 season, and 38.6 million bales last season, which ended in September 2015.
The new revised estimate is 1.4 million bales lower than the February estimate of 35.2 million bales.
To meet the expected demand of 37.6 million bales, which will be slightly higher this year than last year, India will use its stock reserves. As a result, the country’s closing stock this year will be 4.3 million bales – down from last year’s 6.6 million bales.
As production continues to show a decline since 2013-14, exports are projected to be 6.8 million bales – also down versus higher numbers during the three previous crop years.
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