Cotton Association of India estimates cotton output at 382.75 lakh bales for 2014-15

MUMBAI: The Cotton Association of India (CAI) today estimated the May output of the crop at 382.75 lakh bales for the 2014-15 season (beginning from October 1, 2014).

The total cotton crop stood at 407.25 lakh bales (of 170 kg each) during 2013-14, according to CAI data.

The main reason for reduction in the crop estimate is untimely rain in the Central Zone that has affected the output, CAI said. Total crop in the central region in May is estimated at 204.50 lakh bales, compared to 235.75 lakh bales last year.

The central zone includes Gujarat, Maharashtra and Madhya Pradesh.

The projected balance sheet drawn by the CAI for 2014-15 estimates total cotton supply at 453.65 lakh bales while domestic consumption is estimated at 310 lakh bales, thus leaving an available surplus of 143.65 lakh bales.

CAI further said that prediction of a below normal rainfall is a cause of concern but not a cause of panic. The Cotton Corporation of India needs to liquidate their stock otherwise they will be left with about 30 lakh bales stock at the end of the season, it said.

This might result in a big hit to the cotton farmer. There is also a need to liquidate stock in the international market, it added.