Cotton output at 400.25 lakh bales in 2014-15: Cotton Association of India

MUMBAI: The Cotton Association of India (CAI) today said December estimate of the crop stood at 400.25 lakh bales for the season 2014-15, beginning on October 1, 2014, which is lower compared to last year due to slight decline in productivity in the central region.

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

The projected balance sheet drawn by the CAI for the year 2014-15 estimates total cotton supply at 472.15 lakh bales while domestic consumption is estimated at 306 lakh bales, thus leaving an available surplus of 166.15 lakh bales.

Earlier, in its November estimates CAI had put the cotton production at 402 lakh bales.

CAI further said that owing to a drastic cut in imports of cotton by China coupled with a large surplus, cotton prices have fallen drastically the world over.

In India too, the entire cotton sector is reeling under the intense pressure of the unabated falling prices and MSP operations are taking place all over the country, it said.

With a bumper crop of around four crore bales and a huge available surplus resulting in a glut situation, the cotton sector in the country is facing a major crisis, it said.

"In order to tide over this situation, we urge the government to support the entire cotton sector, including the ginning, trading and exporting sectors through banking channels and other means," the CAI statement added.