In a recent development, the Cotton Association of India (CAI) has revised its cotton pressing estimate for the ongoing 2023-24 season, signaling potential challenges in the cotton sector. The CAI, after a virtual meeting of its Crop Committee on November 17, 2023, announced a downward adjustment of 1 lakh bales, bringing the new estimate to 294.10 lakh bales of 170 kgs. each. This revision raises concerns about the state of cotton production, particularly in Haryana, where reports of damage due to pink bollworm infestation and farmer-driven uprooting of cotton plants prompted a reduction in pressing numbers.
The CAI's October supply figures indicate a total supply of 54.74 lakh bales for the month, comprising arrivals of 24.34 lakh bales, imports of 1.50 lakh bales, and an opening stock of 28.90 lakh bales. However, the pressing estimate for October stands at 26 lakh bales, leaving a lower closing stock of 27.74 lakh bales.
The Crop Committee, consisting of 18 members representing various cotton-growing regions, maintained the consumption estimate at 311 lakh bales for the entire season, mirroring the figures from the previous year. Notably, cotton imports for the 2023-24 season are expected to reach 22 lakh bales, a significant increase of 9.5 lakh bales compared to the previous year. Meanwhile, exports are estimated to be 14 lakh bales, representing a slight decline from the previous season.
The CAI's projections for the closing stock as of September 30, 2024, highlight a decrease to 20 lakh bales, down from 28.90 lakh bales in the previous year. This may indicate potential challenges in meeting demand in the coming months.
As the industry grapples with uncertainties, stakeholders will closely monitor pressing numbers and assess whether further adjustments are necessary. The CAI's decision to maintain the consumption estimate while revising pressing figures underscores the intricate dynamics at play in the cotton sector, requiring a delicate balance between supply and demand.
