The Hindu Business Line : Cotton output forecast unchanged

The South India Cotton Association has maintained cotton production in the new season at last week's estimation of 309 lakh bales (of 170 kg) despite reports of deficient monsoon in Haryana and Rajasthan, following forecast of heavy rains.

"The monsoon is very deficient in Rajasthan at this point in time. In Haryana, there is a shortfall, but weather experts indicate a revival at any time. Monsoon cover is not complete in Gujarat and too early to decide on Maharashtra and Madhya Pradesh, as the rainfall has just started," the SICA Honorary Secretary, Mr K.N. Viswanathan, said.

Assuming no major change in yield levels, SICA expects the crop size at 309 lakh bales in the 2009-10 season, which is only 6 per cent higher than the Cotton Advisory Board's (CAB) revised estimate of 290 lakh bales during the 2008-09 season.

"We have made a cautious estimate of the crop. If you had noticed, CAB had, at the beginning of the 2008-09 season projected the crop size at 315 lakh bales, before revising it to 290 lakh bales," Mr Viswanathan said.

Trade sources perceive a satisfactory crop position at this juncture. Cotton arrivals up to July 3, 2009 stood at 284.95 lakh bales according to the Cotton Corporation of India for 2008-09.

Export registration

Reports from the Textile Commissioner's office show that only 30.16 lakh bales of cotton were registered for exports during the 2008-09 (up to July 3, 2009) against CAB's estimate of 50 lakh bales.

On price behaviour, Mr Viswanathan said: "Market is following CCI price. They have procured 35 per cent of the crop."

Trade sources do not anticipate the price to go up, due to the decline in mill consumption and no exports.

Related Stories:
Cotton output may top 300 lakh bales next season
AP to grow cotton on 11.8 lakh hectares
Cotton prices up as arrivals slow down

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