Cotton scenario favourable: CITI
The textile industry is beaming with confidence as it expects the overall cotton scenario - production, consumption, prices and exports - to be favourable this kharif season.
By PTI |
NEW DELHI: The textile industry is beaming with confidence as it expects the overall cotton scenario - production, consumption, prices and exports - to be favourable this kharif season.
"All conditions are favourable as we look at the entire scenario," Confederation of Indian Textile Industry (CITI) Secretary General D K Nair told reporters.
He said the cotton output is likely to go up by nearly 11 per cent to 310 lakh bales in 2007-08 season, compared to an estimated 280 lakh bales produced in the previous year. One bale of cotton weighs 170 kg.
"Even though the output is estimated to be higher, the prices would be firm as consumption and export are also expected to go up," Nair said.
He said the industry expects cotton consumption to go up by 10 per cent this year as many mills have expanded their capacities.
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The CITI official also said cotton export is likely to go up on more demand from China. "It is too early to estimate the volume of export, but the shipment is likely to increase." India's cotton export stood at 55 lakh bales in 2006-07, of which 80 per cent went to China.
The cotton acreage in the on-going kharif season stood at 90.54 lakh hectare till September 7 as compared to 86.41 lakh hectare in the year-ago period. Of this, 53.34 lakh hectare is under Bt cotton, according to the Agriculture Ministry.
The large surpluses and low prices have turned India into a major exporter, an USDA report recently said.
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The cotton exports of India have jumped nearly 25 per cent in 2006-07, with an estimated 62 per cent going to China, USDA said. Start a SIP with as low as ₹500 with ET Money App!
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