India : EICA Estimates 14 Percent Drop In Cotton

In a conference on `How to meet challenges of quantitative and qualitative needs of Indian cotton textiles industry in the quota-free regime'', East India Cotton Association (EICA), for the season 2002-03, estimated 136 lakh bales of raw cotton crop which is a drop of about 14 percent
as compared to the previous season figure which was 158 lakh bales.

Mr K.F. Jhunjhunwala, President of the EICA said farmers should be provided with credit at reasonable rate of interest.

With the higher opening balance estimate at 40 lakh bales and lowering cotton import estimate by 9.25 lakh bales to 16 lakh bales, EICA gave estimate of total availability of cotton at 192 lakh bales as against the previous season''s figure of 212.26 lakh bales.

The crop estimates, made at the All-India Cotton Trade Associations'' conference, were pruned for Maharashtra to 24 lakh bales (lb) (from the previous season''s figure of 34.25 lb), Gujarat 30.50 lb (32.50), Madhya Pradesh 18 lb (20), Andhra Pradesh 20 lb (26.75), Karnataka 6 lb (7), Tamil Nadu 4 lb (5), Punjab 8 lb (9.25), Haryana 8.50 lb (5.50), Rajasthan 4.50 lb (7) and others 1 lb (0.75).

On the demand side, there has been downward movement. Mill consumption is estimated to be 145 lakh bales as against 147 lakh bales actually consumed last season. Non-mill consumption would be 11.50 lakh bales compared to 13.06 lakh bales and SSI consumption at 11 lakh bales as against 11.70 lakh bales. Thus, the total outgo is estimated at 168 lakh bales, leaving a closing stock of 24 lakh bales.