Addressing the 29th annual general meeting of Cotton Corporation of India (CCI), chairman, Vishwa Nath, stated that though it was too early to predict a crop size at this stage, reports emanating from the three cotton growing zones indicate that the production may exceed the crop size of 1998-99.

However the area under cotton cultivation in 1999-2000 may be lesser as compared to 93 lakh hectares during 1998-99.

Commenting on the outlook for the future of cotton he stated that many of the spinning units are shifting to the producing countries. Coupled with recession world over and increased use of man-made fibres, the international trade in cotton is likely to remain subdued in the year 1999-2000 as well.

Also, due to almost static consumption and increased production, the prices of cotton are notlikely to rise in the coming cotton season. In addition, the recent entry of China in the export market, Pakistan and Turkey are also likely to offer cotton in exports.

The textile mills are not committing their large demand for supplies and hence sellers and shippers are likely to offer cotton at cheaper prices for increased sales. As a result, both the demand as well as the prices are likely to be under pressure.

Since the domestic cotton prices are likely to remain nearer to the international prices, the cotton exports from India are likely to be difficult. As a result, however, the imports may remain feasible even in the coming year, he stated.

Commenting on the world crop situation he said that as per the latest release of ICAC, world cotton production in 1999-2000 is placed at 19.10 million tonne compared to the estimated production of 18.45 million tons during 1998-99. This is higher by 6,50,000 tonne from 1998-99.

One of the major contributors to the higher world production during 1999-2000is USA where production is expected to be about 4.0 million tons as compared to current year's estimated crop size of 3.03 million tonne. China's crop is estimated lower at 4.1 million tons while for India next year's crop has been placed slightly higher level of 2.8 million tons against 2.75 million tons in the the previous season.