MUMBAI (Commoditiescontrol) - The Cotton Association of India (CAI) has expressed concern over remaining stock of cotton with the Cotton Corporation of India (CCI). It had procured about 87 lakh bales of cotton from farmers at minimum support price (MSP) to provide price support. Unfortunately, CCI has not been able to sell the entire quantity of cotton procured by it. It has so far liquidated around 38-39 lakh bales cotton and currently has an unsold stock of around 48 lakh bales.
But looking the pace at which the agency is offloading its stock, a sizeable quantity of cotton is likely to remain unsold at the end of the season, said Mr. Dhiren Sheth, CAI President. This does not augurs well for the country. Apprehensions of a major support price operation at the beginning of the next cotton season itself are looming large, Mr. Sheth added.
According to the association, a faulty reserve policy of China had resulted China holding a stock equivalent to its cotton consumption of about 2 years.
Meanwhile, in its June estimate, CAI has retained its cotton crop estimate for the season 2014-15 beginning 1st October 2014 at 382.75 lakh bales (170kg each).
The projected Balance Sheet drawn by the CAI for the year 2014-15 estimates total cotton supply at 453.65 lakh bales, while domestic consumption is estimated at 315.00 lakh bales, thus leaving an available surplus of 138.65 lakh bales.
On arrivals, it said that total cotton arrivals as on 30th July, 2015 is estimated at around 376.25 lakh bales.
(By Commoditiescontrol Bureau; +91-22-40015534)
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