Production seen flaccid at 24.25 million bales

The country's cotton output in 2005-06 (October-September) is seen at 24.25 million bales (1 bale = 170 kilograms), as against 24.30 million bales in 2004-05, according to the data released Wednesday by the Cotton Advisory Board.

The expected marginal fall is because of the decline in output in Andhra Pradesh, Textile Commissioner J N Singh said.

The Cotton Advisory Board, which met on Wednesday, estimated that the opening stock for 2005-06 is 7.2 million bales. Imports were pegged at 600,000 bales.

Therefore, while the total supply is seen at 32.05 million bales, total consumption during the year is seen at 23.8-23.9 million bales. Mill consumption is seen at 18 million bales, against 16.3 million bales in 2004-05.

Cotton exports in 2005-06 are seen at 2.5 million bales and non-mill consumption at 1.5 million bales. The closing stock for the year is estimated at 8.25 million bales.

"Cotton production in the country has been at its peak over the last two successive years and we expect domestic prices to rule above the minimum support price," said Singh. He further quoted figures from the International Cotton Advisory Committee to reiterate that even international cotton prices are unlikely to come down.

According to him, farmers here are set to benefit, as there is no downward pressure on prices.

Meanwhile, on the production front, Singh said the total output in south India is estimated at 4.25 million bales, against the previous estimate of 4.6 million bales. "There has been some amount of output reduction in south India, but good production in Punjab and Gujarat would offset the fall," he said.

On the issue of bacillus thuringiensis (Bt) cotton, the textile commissioner said seed prices are set to decline with more players entering the fray.

He also informed that the commissioner's office has appointed a consultant to make all industry and policy-related information online through a portal.

"The portal is expected to be ready within 2-3 months and will be freely accessible at the initial stage," he said.