Indian Spinning Industry Body Estimates Lower Cotton Production

By Jim.Robinson|January 27, 2011

The Southern India Mills’ Association (SIMA) has released its estimate for the 2010/11 cotton crop, and it’s not good news for a world that desperately needs to replenish its stocks. The Coimbatore-based organization, which has more than 400 members, predicts that the 2010/11 crop will total 30.9 million bales (170 kg)–significantly lower than the most recent estimate from the Cotton Advisory Board (CAB) of India. Three weeks ago, CAB estimated 20101/11 production to be 32.9 million bales, and domestic consumption to total 27.5 million bales.

J. Thulasidharan, Chairman of SIMA, said in a recent statement that with the current cotton production scenario, Indian mills will face supply shortfall beginning in July, and that will lead to a sharp increase in yarn prices. He has requested that the Ministry of Textiles take up the cotton export matter with the Ministries of Commerce and Agriculture. SIMA wants the cotton export ceiling to remain at 5.5 million bales (170 kg each).

Textile Minister Dayanidhi Maran, while laying the foundation for a huge weaving complex in the Southern State of Tamilnadu, also stated that the cotton export limit should be maintained at 5.5 million bales, which should bring down cotton prices in the domestic market.

Textile Commissioner Anil B. Joshi told Cotton International that the revision of cotton export limit can only be decided by a Group of Ministers including those of Agriculture, Commerce and Textiles. There is no word as to when this group will meet to take up the cotton export situation. Until that happens, the export limit will remain at 5.5 million bales.