The Ahmedabad Textile Research Association (Atra) is likely to conduct a fresh study on the exact consumption of loose cotton in the country following a demand from the textile sector, industry sources said yesterday.
We had pointed out the discrepancies in an earlier study on loose cotton conducted by Atra and it is likely to work on it again, the sources said.
Loose cotton is not accounted for in the projections made by the cotton advisory board (CAB) which works out details of production and consumption in the country.
Loose cotton is consumed by some textile mills in the small scale sector without the commodity being either pressed or ginned.
While working out the cotton budget during the last two seasons (Oct-Sept 96/97 and 97/98), the CAB had estimated loose cotton to be around five lakh bales (of 170 kg each).
Industry sources said though there was no doubt that loose cotton was being consumed and not accounted for to the textiles commissioner office, the amount projected in the cotton budget might be far higher than the amount actually utilised. (Spinning mills are required to produce returns to the textile commissioners office on the amount of cotton consumed).
While disputing the CAB estimates, the spinning sector had asked the textiles commissioners office to give a report on those mills which were not producing returns on cotton consumption.
But we have not been given the list. Unless the list is given, how can we verify which unit is consuming how much? the sources asked.
The CAB, assuming loose cotton production to be five lakh bales, has projected the total cotton production this season to be 169 lakh bales, which is lower than last seasons record production of 176.5 lakh bales.
Of the 169 lakh bales expected to be produced, consumption by organised mills has been put at 152 lakh bales, while offtake by small mills has been projected to be seven lakh bales.
The sources said estimates of consumption by organised mills had been made after taking into consideration the 150.41 lakh bales offtake last year. It was nine per cent more that consumption during 1995-96 season, when consumption was 138.39 lakh bales.
Non-mills consumption has been estimated at around nine lakh bales and the carry-over stocks is expected to be 20.52 lakh bales.
