Cotton Council of India (CCI) has sold 6.68 lakh bales through e-auctions out of their procured stock of 86 lakh bales, while the Maharashtra Federation is holding a stock of 4.75 lakh bales procured by them. All India pressing figures till April 30, 2015 are approximately 336 lakh bales, while all India arrivals have dropped to approximately 40,000 bales per day. As per the report of Indian Cotton Federation (ICF), unsold stocks lying with ginners and traders are approximately 20 lakh bales. The increase in duty drawback for garments exporters from 6 to 7.5 per cent and for export of yarn which has been increased from 2.08 to 3.10 per cent will offer boost to industry, it said.

ICF noted that in Punjab, Haryana and Rajasthan, arrivals of cotton are insignificant as the season is at its end in this region. The price quoted for good J-34 r/g in Punjab is Rs 3,915 while in Haryana it is Rs 3,860 and in Rajasthan it is Rs 3,840 per maund spot. Cotton sowing has already begun and there is good demand from farmers for BT and conventional varieties as per reports from many tracts from Northern India.

Exports of raw cotton stands at approximately 50 lakh bales and CCI could release more stock to consuming mills to keep cotton lint prices steady. The CCEA has approved extra funds for government federations and CCI to meet losses on their MSP operations, adds the report. Farmer groups are of the view that the cotton area may not shrink during 2015-16 season as land conditioning has begun in many cotton producing states.