Cotton trade body Cotton Association of India (CAI) has elevated serious objection more than the US Office of Agriculture’s (USDA) assessment of India’s cotton stock positions alleging a misleading portrayal of India’s cotton marketplace in the worldwide marketplace.
In its India-specific Cotton and Products update for June 2020, the USDA has believed a cotton carryover stock of 19.eight million US bales (every single of 480-lb) as on July 2020. This operates out to an equal to about 244 lakh bales (of one hundred seventy kgs every single). The CAI termed it ‘astronomically high’ figure from the reality.
“The carryover stock believed by USDA is astronomically high which is developing a notion in the worldwide marketplace that there is a glut in Indian cotton. Thanks to this, potential buyers get confused and unwilling to invest in,” explained Atul Ganatra, President, CAI.
This is not the to start with time when the CAI has elevated an objection to USDA’s estimates. Very last calendar year, the CAI experienced objected to USDA’s cotton crop estimates, which projected India’s cotton crop at 345.twenty five lakh bales for the calendar year 2018-19, as in opposition to CAI’s have crop estimate of 321 lakh bales.
In a letter to USDA, Ganatra knowledgeable that equally the Cotton Company of India (CCI) and CAI have believed the carryover stock of Indian cotton at 50 lakh bales as on September thirty, 2020 as in opposition to the stock estimates of two hundred lakh bales by the USDA. The Cotton Advisory Board (Taxi) has also believed the carryover stock as on September thirty, 2020 at forty eight.41 lakh bales. He requested the USDA for reconciliation of the carryover stock information of USDA with CAI.
The explained misleading USDA cotton stock figures are explained to have frustrated the Indian cotton charges main to a reduction for the farmers.
Looking for govt intervention
The CAI has also composed a letter to the Union Textile Ministry in search of an intervention in the make a difference and perform an physical exercise of reconciling the carry-more than stock with USDA to prohibit the injury.
In the letter dated July eight, Ganatra said that the USDA’s figures are “..entirely misplaced and artificially depressing the charges of Indian cotton in the worldwide markets. Indian cotton, which, on an ordinary, used to trade at a top quality of about two hundred points on ICE, is at present buying and selling at a discounted of more than 600 points on ICE.”
“We apprehend that this untrue propaganda of demonstrating excessively high carry‐over stock of Indian cotton appears to have been carried out with the ulterior motive of depressing and derailing the charges of Indian cotton. This apprehension, if real, will cause a substantial injury to the total cotton and textile worth chain of India,” Ganatra alleged.
Ganatra added that the frustrated charges of Indian cotton are leading to substantial losses to all stake holders of the Indian cotton worth chain. Farmers are keeping about ten lakh bales of uncooked