India to import 4 lakh bales of cotton

India's cotton imports are set to reach a record in the current reason to September, after the Cotton Advisory board (CAB) warned that the country's crop would fall to 14.8m bales of 170 kg each, compared with an earlier estimate of 16.9m bales. India produced a cotton crop of 17.79m bales last year.

The long spell of winter rain had hit the quality of the crop.

According to the CAB, cotton exports would not exceed 300,000 bales in 1997-98. India exported 1.68m bales last year.The CAB said winter rains had ruined the crop in large parts of Maharashtra, the second largest cotton growing state in India ,where crop will only reach 1.5m bales, against the earlier estimates of 3.1m bales.

The CAB has assumed consumption of cotton by mills will drop 480,000 bales to 15.35m bales this year.Non mill consumption is pegged 50,000 bales lower at 900,000 bales. Trade official say high prices will encourage growers to bring more land uhder cotton next time.

Market Update
(Oil Seeds)