Cotton consumption to drop by 8 percent due to current Covid-19 wave

Cotton consumption is expected to drop by a little more than 8% as a result of the current Covid-19 wave and subsequent lockdowns in several states, according to India's top cotton crop assessment agency.

Cotton consumption for season 2020-21 (October to September) has been reduced by the Union Ministry of Textiles' Committee on Cotton Production and Consumption (COCPC) from 330 lakh bales (each of 170 kg) to 303 lakh bales, owing to the current lockdowns as the extreme second wave of Covid has gripped the entire country.

The predicted cotton closing stock has been raised from 98.79 lakh bales to 118.79 lakh bales at the end of the season on September 30, 2021, according to the COCPC meeting held on April 30.

Exports are expected to suffer a setback

The COCPC, which took over from the former Cotton Advisory Board (CAB) in September 2020, has also reduced the forecast cotton production for the season from 371 lakh bales to 360 lakh bales.

Though cotton imports are expected to remain flat at 11 lakh bales for the year, exports are expected to drop from 75 lakh bales to 70 lakh bales, compared to earlier estimates of 75 lakh bales.

“The sowing area of Indian cotton has been raised from 133.73 lakh hectares to 134.77 lakh hectares. The biggest shift was in Punjab, where sowing was reduced from 3.92 lakh hectares to 2.48 lakh hectares, while it rose from 6.37 lakh hectares to 8.17 lakh hectares in Karnataka, according to COCPC.

The overall cotton production for the year 2020-21, which began on October 1, 2020, is expected to be 491.79 lakh bales, with an approximate opening stock of 120.79 lakh bales. This includes 360 lakh bales of crop and 11 lakh bales of imports in addition to the opening stock.

“The sowing area of Indian cotton has been raised from 133.73 lakh hectares to 134.77 lakh hectares. The biggest shift was in Punjab, where sowing was reduced from 3.92 lakh hectares to 2.48 lakh hectares, while it rose from 6.37 lakh hectares to 8.17 lakh hectares in Karnataka, according to COCPC.

The overall cotton production for the year 2020-21, which began on October 1, 2020, is expected to be 491.79 lakh bales, with an approximate opening stock of 120.79 lakh bales. This includes 360 lakh bales of crop and 11 lakh bales of imports in addition to the opening stock.

Total demand is expected to be 373 lakh bales, with 303 lakh bales consumed domestically and 70 lakh bales exported. Cotton trade body Cotton Association of India (CAI) has estimated India's cotton production for the year at 360 lakh bales, which is the same as COCPC's projection. However, gross demand is expected to be 330 lakh bales this year, leaving a closing stock of 106 lakh bales.