Cotton body lowers output, demand estimate

Confirming the woes of the cotton economy, the Cotton Advisory Board (CAB) has lowered both the production and demand estimate for the crop season 2008-09 at its meeting held in Mumbai on Friday.
Cut 9%
The production estimate for 2008-09 was lowered by 9 per cent to 340 lakh bales (lb) against 369 lb recorded last year.
Demand was expected to fall sharper by 16 per cent to 280 lb in the year under review against 326 lb registered last year. Reeling under the economic slowdown, mill consumption may fall 4 per cent to 195 lakh bales (203 lakh bales), while that of small scale units was likely to drop 15 per cent to 20 lakh bales (23 lakh bales), according to CAB estimates.
Mr A.B. Joshi, Textile Commissioner, Maharashtra, said apart from unfavourable climatic condition and marginal fall in acreage, the production was affected by red leaf syndrome in some of the States.
Acreage down
Area under cotton cultivation fell marginally to 93.73 lakh hectares (lh) (94.39 lh) as the northern zone registered a drop of 34 per cent to 12.15 lh (14.26 lh). Punjab recorded 11 per cent dip in acreage at 5.37 lh (6.04 lh), Haryana 5.80 per cent to 4.55 lh (4.83 lh) and Rajasthan 34 pr cent at 2.23 lh (3.39 lh).
Cotton coverage in the central zone (Gujarat, Maharashtra and Madhya Pradesh) was down marginally by 0.66 per cent at 62.05 lh (62.46 lh), while in the southern zone including Andhra Pradesh, Karnataka and Tamil Nadu it was up 12 per cent at 18.55 lh (16.59 lh).
AREA UNDER BT
Area under Bt cotton has increased substantially in all the nine States and occupies 69 lh which accounts for 73 per cent of total area covered.
Production in all the States fell sharply except for the southern zone which registered an increase of 13.56 per cent to 67 lb (59 lb). Led by the 20.45 per cent dip in production in Punjab to 17.50 lb (22 lb), the northern zone witnessed a fall of 17 per cent to 39 lb (47 lb). Haryana production was down 12.50 per cent at 14 lb (16 lb) and Rajasthan it dropped 16.67 per cent to 7.50 lb (9 lb).
In Gujarat and Maharashtra the production was down 19.65 per cent and 14.29 per cent to 90 lb (112 lb) and 18 lb (21 lb), while it was static in Maharashtra at 62 lb.
The southern zone recorded a rise of 13.56 per cent in production at 67 lb (59 lb).Yield low
Yield per hectare in Punjab was down 10.53 per cent to 554 kg/hectare (kph) (619 kph), Gujarat 19.48 per cent at 633 kph (786 kph) and Madhya Pradesh 17.56 per cent to 467 kph (567 kph). Yield in Karnataka was higher by 16 per cent at 392 kph (338 kph). Overall the yield was down 7.29 per cent at 526 kph (567 kph).
Cotton Corporation of India has procured about 71 lakh bales as on January-end, while it has sold 12 lakh bales, said Mr S.C. Grover, Chairman and Managing Director, Cotton Corporation of India.
Exports estimate
CAB has lowered the exports estimate by 70 per cent to 50 lb against 85 lb recorded last year. The textile commissioner office has registered request for export of 11 lb while only 7 lb was shipped. Expressing confidence that the export target of 50 lb will be achieved, Mr Joshi said the country is getting good orders from China, Bangladesh and Pakistan. (Source: The Hindu BusinessLine)