Cotton Association of India (CAI) has released its latest estimate of 2017-18 crop year beginning from October 1, 2018-18. In this latest estimate, the CAI has estimated cotton crop for the ongoing 2017-118 season at 360 lakh bales of 170 kg each, which is lower by 2 lakh bales – one lakh bales each in the state of Maharashtra and Karnataka than its previous estimate of 362 lakh bales made in the month of March 2018.
The projected balance sheet drawn by the CAI has estimated total cotton supply for the season at 410 lakh bales of 170 kg each which includes the opening stock of 30 lakh bales at the beginning of the season and the imports which the CAI has retained at 20 lakh bales as in the previous month. The CAI has estimated domestic consumption at 324 lakh bales while the export for the Season are estimated at 65 lakh bales which is higher by 5 lakh bales than the CAI’s estimate in the previous month as the country is now witnessing a good export demand.
The CAI estimates the cotton arrivals up to 31st March 2018 at 287 lakh bales as per the data received by it from upcountry associations and various other trade sources.
Thinking about the state of affairs in the garment industry with the current set of constraints both in the domestic and export sector makes one feel that more than subsidies, we need a clear fiscal policy that eliminates the need of tariff wars. In addition we need innovative technology that will ensure that the cost of production is kept low.