India Cotton crop is increasing in season 2015-16

Total Indian domestic consumption is expected to increase by 5 million bales. Consumption in organized mill sector will be about 28.5 million bales as against 27.8 million bales, this year

Indian cotton crop for the new season (2015-16) beginning this October is estimated to be 38 million bales of 170 kilograms each.

The first estimate was announced on August 21, 2015 by Mumbai based Cotton Association of India (CAI). The new season’s crop will be less than this year’s estimate by 275000 bales (170 Kgs. each). Acreage is expected to be lower, while higher yield is expected.

According to CAI, the opening stock will be about 7.9 million bales, which will be higher than this year’s opening stock.

Total domestic consumption is expected to increase by 5 million bales. Consumption in organized mill sector will be about 28.5 million bales as against 27.8 million bales, this year.

In recent days, cotton price is showing an upward trend in India. With the latest estimate showing a slight decline in production and projected surplus of about 14.57 million bales in the new season (October 15-September 16), it will be interesting to see how the market reacts.