Covid-19 Two-month lockdown caused drastic changes to the annual cotton estimate

(By delegate) Mumbai, May 26, 2020, Tuesday

The Corona epidemic has turned all trade-off equations into a two-month lockdown. Its special impact has been on the agricultural sector where estimates of production, revenue, import-export, closing stock at the beginning of the season (September-October) have completely changed due to Kovid-12. The entire economy of the agricultural sector has faltered.

Cotton Assoc. In the Rooney Balance Sheet released by the Government of India for the 2017-2020 season (October-September) till the end of April 20, the figures for all items except growth in exports have been significantly reduced as compared to the preliminary estimate for the first month of October-19. Due to the April-May 30 lockdown, the local and global trade process came to a complete standstill.

According to CAI data, cotton production in the country has declined by 3.50 lakh bales to 20 lakh bales (2.50 lakh bales) as compared to the first estimate on October 19, imports have declined by one lakh bales to 12 lakh bales (3 lakh bales) and total supply position with opening stock: . Mill consumption is estimated to be 3.00 lakh bales (211.50) with a decrease of .2 lakh bales. Against mill consumption, it is estimated to be 3 lakh bales. Consumption is likely to fall by two lakh bales to 12 (15) lakh bales.

Exports alone are in India's favor, with exports likely to increase by 5 lakh bales to 5 lakh bales from the previous estimate of 5 lakh bales. Thus, with exports, the total demand for cotton in the country has come down by 3 lakh bales to 4 lakh bales (3 lakh bales). For the first time in seven months after the first estimate, the CAI has made major changes to the April 30 estimate based on market conditions and surveys.