Cotton production in India during the 2016-17 crop year is estimated at 34.1 million bales (each of 170 kg), up from 33.8 million bales last year, an industry association said in its latest report.
With an opening stock of about 4.5 million bales at the beginning of the 2016-17 season, the Cotton Association of India (CAI) has projected a total demand of 29.5 million bales for the year, against 38.2 million bales last year. CAI's estimates put available the surplus at 11.2 million bales.
Exports are likely to be around 5-5.5 million bales with the main destinations being Vietnam, Bangladesh and Indonesia. This is expected to further fuel the bullish sentiment, the association said.