The Cotton Association of India (CAI) has estimated the cotton crop for the new season (Oct. 2012- Sep 2013) to be 35.4 million bales (170 kg each). According to CAI estimates, there will be a decrease of 3% in cotton cultivation area this year.
According to the new estimates, Gujarat and Maharashtra will share the position as the top-producing state, despite the fact that Gujarat will see a drastic decline in cotton production compared with last year. The new estimates predict Gujarat will produce 8 million bales this year, down 3.4 million bales from last year.
CAI estimates India’s total supply for this year to be 41.7 million bales, while demand in the new season is estimated to be 26.6 million bales, which is far less than last year’s demand. That will leave India with a surplus of 15.1 million bales – an amount three times greater than the closing stock for the year ending in Sept. 2012.
According to Dhiren Sheth, CAI president, the association has requested the government to expedite exports and remove the ceiling of 10,000 bales, which an Indian exporter can apply during each export registration. CAI has gone one step further, requesting that registration for cotton exports be removed altogether.