CAI raises cotton stock to 55.5 lakh bales for 2024-25 season
The CAI estimates record stocks of cotton for the 2024-25 season, driven by projected growth in production, consumption and imports.
The ending stocks of cotton in the country for the current 2024-25 season ending in September are estimated at around 55.59 lakh bales (each of 170 kg) - up by nearly 84 per cent from the previous year's 30.19 lakh bales, according to the latest estimates of trade organisation Cotton Association of India (CAI).
In a statement, CAI President Atul Ganatra said cotton crushing for the 2024-25 season is estimated at 311.40 lakh bales - higher than the previous estimate of 301.14 lakh bales due to an increase in crop size.
Higher pressures
This increase is due to higher than expected pressures in Maharashtra (5 lakh bales), Gujarat and Telangana (1.5 lakh bales each) and 1 lakh bale fibre crop pressure in Karnataka. Andhra Pradesh, Haryana and Rajasthan also witnessed marginal increase in pressure numbers due to improved crop arrivals.
CAI estimates total cotton supply at end-June to be 356.76 lakh bales, comprising 296.57 lakh bales of pressure, 30 lakh bales of imports and 30.19 lakh bales of opening stocks. Consumption at end-June stood at 233.5 lakh bales, while exports are estimated at 15.25 lakh bales. Opening stocks are estimated at 108.01 lakh bales by end-June 2025. This includes 32.00 lakh bales with textile mills and the remaining 76.01 lakh bales with CCI, Maharashtra Federation and others (MNCs, traders, ginners, exporters, etc.), which includes cotton sold but not delivered.
Increase in production
CAI has estimated the total cotton supply by the end of cotton season 2024-25 at 380.59 lakh bales as against the earlier estimate of 370.34 lakh bales due to higher production in some states. Domestic consumption for this season is estimated to increase marginally to 308 lakh bales as against the earlier estimate of 305 lakh bales, while exports are estimated at 17 lakh bales. In fact, exports this season are estimated to be 40 per cent lower than last year's 28.36 lakh bales.
Cotton imports for the year 2024-25 are estimated at 39 lakh bales, more than double the previous year's estimate of 15.2 lakh bales. CAI said about 30 lakh bales are expected to reach Indian ports by the end of June.
Meanwhile, cotton sowing is going on at a good pace in major producing states. As of July 7, the fibre crop has been sown in about 79.54 lakh hectares (LH), slightly higher than 78.58 LH a year ago.
