The production of cotton is estimated at 341 lakh bales for 2016-17, as per January projection done by industry body Cotton Association of India (CAI). The production of cotton stood at 337.75 lakh bales last year. CAI has projected an increase in cotton consumption for the ongoing crop year to 295 lakh bales against its previous estimate of 290 lakh bales.
The projected balance sheet drawn by the CAI estimated total cotton supply for the cotton season 2016-17 to be at 405 lakh bales. The total available surplus for the season works out at 110 lakh bales considering the domestic consumption of 295 lakh bales.
The industry body estimated that imports will decline by 3 lakh bales to 19 lakh bales compared to 22 lakh bales last year. The pace of arrivals has started picking up recently and is now approaching 2 lakh bales a day as the farmers are realizing better price for their produce.