CAI raises cotton crop estimate to 304.25 lakh bales for 2024-25

The Cotton Association of India (CAI) has raised its 2024-25 cotton output estimate to 304.25 lakh bales (170 kg each), 2 lakh bales higher than earlier projections. This increase is attributed to a 6 lakh bale rise in Telangana’s output, now pegged at 42 lakh bales. However, production in North India is expected to decline by 3.5 lakh bales.

Total supplies till December-end reached 176.04 lakh bales, comprising 133.85 lakh bales from pressing, 12 lakh bales from imports, and an opening stock of 30.19 lakh bales. December-end stocks were estimated at 85.04 lakh bales.

Cumulative market arrivals as of January 22 exceeded 156 lakh bales, over half of the estimated crop size, with daily arrivals surpassing 1.5 lakh bales, mainly from Maharashtra and Gujarat.

CAI chairman Atul Ganatra noted a 2 lakh bale rise in consumption estimates for the season, now at 315 lakh bales, due to improving demand. Prices remain steady at Rs 53,000-54,000 per candy (356 kg), as mills purchase cautiously. Exports, primarily to Bangladesh, remain slow, with the Cotton Corporation of India (CCI) procuring significant volumes. About half of market arrivals have been absorbed by CCI.