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Updated News :

The Cotton Advisory Board (CAB) at its first meeting for the current season 2007-08 held on 11th January 2008 under the Chairmanship of Shri J.N. Singh, Textile Commissioner, has estimated the cotton crop at 310 lakh bales. This is a historic high and represents a 11% jump over last year's crop estimate of 280 lakh bales.
Area this year was also touched an all-time high of 95.30 lakh hectares because of good returns realised by cotton farmers last year and reasonably good market prices as well as the generally conducive conditions at the sowing time. Apart from overall increase in area, there was a remarkable jump in the coverage of Bt. cottons.
The State-wise details of area and production as estimated by the CAB are presented in the following table.
CAB ESTIMATES ON 11.1.2008

State

Area

Production

 

06-07

07-08(E)

06-07

07-08(E)

Punjab

6.07

6.48

26.00

24.00

Haryana

5.30

4.78

16.00

16.00

Rajasthan

3.50

3.68

8.00

9.00

North Zone

14.87

14.94

50.00

49.00

Gujarat

23.90

25.16

101.00

110.00

Maharashtra

30.70

31.91

52.00

60.00

M.P.

6.39

6.62

18.00

21.00

Central Zone

60.99

63.69

171.00

191.00

A.P.

9.72

10.96

35.00

43.00

Karnataka

3.75

3.71

6.00

8.00

Tamil Nadu

1.22

1.23

5.00

5.00

South Zone

14.69

15.90

46.00

56.00

Others

0.87

0.77

1.00

2.00

Loose Cotton

 

 

+ 12.00

+ 12.00

All India

91.42

95.30

280.00

310.00

E=Estimated

Area in lakh ha.

Production in lakh bales of 170 kgs. each


(According to the information gathered by the Association market arrivals of cotton upto December end aggregate to 155 lakh bales as against 116 lakh bales last year)


As may be observed, production has increased in Central and Southern Zones, the maximum increase of 22% was in South Zone closely followed with a rise of nearly 12% in Central Zone.

Consumption by Mills including SSI and nonmill use has been projected at 245 lakh bales, nearly 13 lakh bales higher as compared to 2006-07 season.
CAB expects exports to be higher at 65 lakh bales as against 58 lakh bales in 2006-07. Imports in 2007-08 are projected at 6.50 lakh bales as compared to 5.53 lakh bales in 2006-07, because mills have to rely on foreign growths to spin some finer counts of yarn.


GARMENT EXPORTERS WORST AFFECTED BY RUPEE APPRECIATION

The steep appreciation of the rupee against US$ in 2007 has affected most industrial segments but the worst hit is said to be textiles, particularly garments. Despite the relief measures provided by the Government like the revival of the Technology Up-gradation Fund Scheme for the 11th Plan and increase in DEPB rates, these have not been considered to be adequate to compensate the loss in exports.
Two other burdens being faced by the textile manufacturers which have hit the margins are stated to be the increase in interest rates and the rise in the cost of inputs. As per reports, banks have increased interest rates even up to 40% in the case of term loans extended to textile companies. The Chairman, CITI, is quoted to have stated that of the total production in the textile industry, 75% is export oriented and in dollar terms that is the reason for the slowdown in the sector.
Union Minister for Commerce is said to have indicated that the textile exports suffered a 22% fall during April -October 2007 period as against the 15 to 20% growth in the preceding few years. Because if the fall in export volume as well as margins, the items meant for exports find their way to the domestic market creating condition of oversupply. This leads to erosion of competitiveness and profits of the industry.

 
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