By admin       2017-01-03

AHMEDABAD, JANUARY 2: Lower realisation prompted farmers to opt out of cotton crop, thereby reducing the area by over 10 per cent for the year 2016-17, informed cotton experts. Also, as per the estimates by international cotton body, global cotton prices are likely to remain firm amid tight demand-supply condition. At the Annual General Meeting (AGM) of the Cotton Association of India (CAI), its President Dhiren Sheth maintained that cotton prices were at lower levels almost during the entire 2015-16 season, resulting in lower realisation. This has led to a reduction of over 10 per cent in the acreage under cotton during 2016-17. “However, due to the improvement in productivity expected on account of better weather conditions across all cotton growing regions of the country, the country expects to produce about 345 lakh bales (of 170 kg each) during 2016-17,” Sheth maintained in his address. On the international demand-supply front, the International Cotton Advisory Committee (ICAC) has predicted consumption outpacing the production thereby leaving less room for a bearish trend in cotton prices. Global scenario: As per the ICAC estimates, world cotton production for 2016-17 crop year is estimated at 22.83 million tonnes — higher by 1.76 million tonnes than the 21.07 million tonnes produced in 2015- 16. The global consumption of the fibre for 2016-17 is estimated at 24.25 million tonnes, up 0.05 million tonnes than the consumption of 24.20 million tonnes during 2015-16. “The fall in production during 2015-16 crop year was not anticipated and has led to a 14 per cent decline in both the world ending stocks and in stocks outside of China. This pushed cotton prices up till the end of the last cotton season,” stated Sheth. International prices have remained high with the Cotlook A index averaging 79 cents/lb during the period from the beginning of the season. New office bearers: Nayan C Mirani of Khimji Visaram & Sons has been appointed as President Cotton Association of India. Udayan B Thakkar of U B Cotton Pvt Ltd has been appointed as Vice-President, CAI at the board of directors meeting held on December 31.

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