By IANS
Ahmedabad : With a total output of 11 million bales of cotton during the season 2007-08, Gujarat has accounted for 35.48 percent of the national output in the commodity, according to Cotton Advisory Board (CAB) data.
The latest CAB balance sheet shows that the state produced 900,000 bales more than what it did during the 2006-07 cotton season. Cotton season commences from September every year and ends on last date of August the following year.
The total production of cotton during the current season is estimated at 31 million bales compared to 29 million bales during the last season. This estimate by the CAB is in consonance with the estimate of the US based International Cotton Advisory Council (ICAC).
CAB expects carry-over stock of 5.4 million bales of cotton September 2008 as against 4.75 million bales Sept 30, 2007.
The cotton utilisation by mills for the current season is placed at 2.07 million bales. This indicated that the textile manufacturing, though hit by the appreciation of the rupee against the dollar, has not slowed down.
This factor too is corroborated by the ICAC, whose report stated that in 2007-08 India and China are the only two countries where cotton utilisation by mills was expected to show an increase. The ICAC projected a fall in the case of Pakistan, the US, EU and Turkey.
ICAC projects continuation of this trend in 2008-09.
The cotton consumption may be slightly more in China and India but the US consumption is expected to register a further decline. With estimated consumption again expected to outstrip production, world ending stock may possibly witness a further decline of five percent to 10.7 million tonnes by the end of next season.
Cotton prices are not increasing as much as those of most competing crops in 2007-08, and these price relationships will affect planting decisions in 2008-09. Cotton area is expected to increase slightly in China and India, to remain stable in Pakistan and to decline further in the US.