Weekly Publication of Cotton Association of India Edited & Published by Amar Singh 2017-18 No. 40 2 nd January, 2018 Published every Tuesday Cotton Exchange Building, 2nd Floor, Cotton Green, Mumbai - 400 033 Phone: 3006 3400 Fax: 2370 0337 Email: cai@caionline.in www.caionline.in Speech by CAI President Shri. Atul Ganatra at the Annual Gala Dinner on December 27, 2017 Good evening my dear cotton friends and respected invitees, I warmly welcome each and every Association member, invited dignities, and all other guests present today. Today I am very glad that our Association could restart the Annual dinner after a long gap. I personally feel hosting such a get-together gives the Association members a chance to meet each other in a social environment without any work stress. After taking over the Presidentship, in the last three months my team of Directors and entire CAI staff have started working very hard on resolving issues of the cotton trade. For example, last month we met the Chief Minister of Maharashtra and requested him to remove the market cess charged by various market committees in different rates from 0.5% to 1.10%. The Chief Minister has assured us that he will do the needful in this matter. The Chief Minister has also informed us that the Maharashtra Government will shortly come out with a new favourable Textile Policy, which will benefit the trade. For the last few months, all India ginners are facing problems with the new GST rule under RCM. To address this issue, we called an all India ginners associations meeting last month. In that meeting, almost all the Presidents and Secretaries of cotton growing states were present. Since we have more than 70 ginners as members of our Association, we are taking up their problems with the GST council and trying to solve these problems. As a protest against RCM, under CAI leadership, All India Ginners Association went on a token strike for a day on 15th December 2017. This is the first time that our Association has actively started working for the ginners. For the last one year, export of cotton to Pakistan was closed. To restart export to Pakistan, we have recently started corresponding with them and our efforts are showing results. We have news that due to our efforts, the Pakistan government has lifted the ban on Indian cotton. Besides this, we are also taking all other necessary steps to increase the cotton exports from India.
2 2 nd January, 2018 Cotton Statistics & News Last month, I along with more than 10 directors met the CMD and other Directors of Cotton Corporation of India and requested them to utilise our 13 cotton laboratories located across India by giving business to us. We also requested CCI to utilise our Arbitration facilities and put a Cotton Association of India Arbitration clause in all their domestic contracts. This will help us to increase the revenue of our Association through Laboratories and Arbitration proceedings. Also for the first time in our Association, we have included one member from each of cotton growing state in our Crop Committee. We have also added some MNC members in our crop committee. Also we have included Cotton Corporation of India in our Crop Committee. By doing this, we are able to give a very correct crop estimation which is a very close estimate of the realistic figure. Regarding this year s crop, we are sticking to our earlier estimation of 375 lakh bales. The good news is that up to 25th December, the all India arrivals had crossed 135 lakh bales and by 31st December, arrivals will cross 147.50 lakh bales. At the same time last year, the arrivals were 108 lakh bales. These arrival figures we have collected from a few big ginners/ brokers from each state. Looking to this pace of arrival, our crop estimation of 375 lakh bales looks very much achievable. For example, for Telangana, we have taken 22 lakh bales arrival which we have confirmed through Shri. Ravinder Reddy, President of Telangana Cotton Association. For Gujarat we have taken arrival figures from Shri. Arun Dalal, Shri. Ajay Dalal and Shri. Sujay Dalal. Likewise, we have collected all figures for the arrivals. Earlier we had estimated that export of cotton will be 63 lakh bales from India, but since Indian cotton rate has increased around 10% in the last 30 days, we have revised the export figures from 63 lakh bales to 55 lakh bales.( Last year s export was nearly 58 lakh bales.) Also we have revised import figures from 17 lakh bales to 20 lakh bales. (Last year s import was 30 lakh bales.) According to the earlier estimation, the carry forward stock will be 39 lakh bales as on 30/09/2018 but due to these revised export and import figures, the carry forward stock will be 50 lakh bales as on 30/09/2018 which is a very comfortable position for Indian spinning mills. Also to boost the cotton business and solve the problems of the industry we are trying to organise two domestic conferences this year the first one in Mumbai and the second in Aurangabad. The dates for these conferences will be announced shortly. I assure all the members that we are on the right path and if such good work continues and if all the members support us, we will once again bring back the prestigious glory of CAI, which is the parent body of all the associations in India. This glory was at its peak when Shri. Babaseth Mirani and Shri. Sureshbhai Kotak were the Presidents of the Association. We are also happy to join hands with all other state Associations for the benefit of our cotton trade. I am extremely happy to see all the members from Mumbai and many upcountry members have attended this annual get together in large numbers, to make it so successful. I thank each one of you for gracing this occasion with your presence.
Cotton association of india 2 nd January, 2018 3 Glimpses of CAI s Annual Gala Dinner CAI s Annual Gala Dinner for members was held on December 27, 2017, at the Turf Club, Mumbai. Around 200 members and guests including a large number of mill owners, MNCs, cotton exporters/ traders/ginners/brokers attended the dinner. CAI President, Shri. Atulbhai Ganatra s welcome address was followed by the felicitation of Shri. Sureshbhai Kotak, Ex-President of CAI and the Chief Guest for the evening. Shri. Kotak also addressed the gathering, sharing words of wisdom garnered through so many years in the cotton industry.
4 2 nd January, 2018 Cotton Statistics & News
Cotton association of india 2 nd January, 2018 5 The CAI s network of independent cotton testing & research laboratories are strategically spread across major cotton centres in India and are equipped with: State-of-the-art technology & world-class Premier and MAG cotton testing machines HVI test mode with trash% tested gravimetrically Current locations : Maharashtra : Mumbai; Akola; Aurangabad Gujarat : Rajkot; Mundra; Ahmedabad Andhra Pradesh : Guntur, Warangal Madhya Pradesh : Indore Karnataka : Hubli Punjab : Bathinda Upcoming locations : Telangana: Adilabad
6 2 nd January, 2018 Cotton Statistics & News CAI Maintains Cotton Crop for the 2017-18 Crop Year at 375 Lakh Bales The Cotton Association of India (CAI) has released its December 2017 estimate of the cotton crop for the 2017-18 season beginning from 1st October 2017. The CAI has retained its December estimate of the cotton crop for the 2017-18 crop year at 375 lakh bales i.e. at the same level as in the previous estimate. The projected Balance Sheet drawn by the CAI estimated total cotton supply for the season at 425 lakh bales of 170 kgs. each including the opening stock of 30 lakh bales at the beginning of the season and the imports which the CAI estimates at 20 lakh bales for 2017-18 crop year. The domestic consumption is estimated to be 320 lakh bales while CAI estimates exports for the season to be 55 lakh bales. As per the data received from various sources, the CAI estimates cotton arrivals upto end December 2017 at 147.75 lakh bales as compared to 108 lakh bales arrived upto 31st December 2016. About 39% of the total crop estimated for the year has already arrived in the market. Looking to the pace of arrivals this year, CAI is of the view that the projected crop of 375 lakh bales for 2017-18 crop year is very much achievable. A statement containing the state-wise estimate of the cotton crop and the balance sheet for the cotton season 2017-18 with the corresponding data for the 2016-17 crop year is given below:- CAI s Estimates of Cotton Crop as on 31st December 2017 for the Seasons 2017-18 and 2016-17 State Production * 2017-18 2016-17 (in lakh bales) Arrivals As on 31st December 2017 (2017-18) Punjab 12.00 8.75 5.00 Haryana 23.00 20.50 13.00 Upper Rajasthan 10.00 7.25 6.00 Lower Rajasthan 12.00 9.25 7.00 Total North Zone 57.00 45.75 31.00 Gujarat 105.00 89.00 34.00 Maharashtra 87.00 88.00 35.00 Madhya Pradesh 21.00 20.50 10.00 Total Central Zone 213.00 197.50 79.00 Telangana 53.00 48.00 22.00 Andhra Pradesh 22.00 18.50 6.00 Karnataka 20.00 17.00 6.00 Tamil Nadu 5.00 5.50 2.00 Total South Zone 100.00 89.00 36.00 Orissa 3.00 3.00 0.75 Others 2.00 2.00 1.00 Total 375.00 337.25 147.75 * Including loose The Balance Sheet drawn by the Association for 2017-18 and 2016-17 is reproduced below:- (in lakh bales) Details 2017-18 2016-17 Opening Stock 30.00 36.50 Production 375.00 337.25 Imports 20.00 27.00 Total Supply 425.00 400.75 Mill Consumption 275.00 265.00 Consumption by SSI Units 30.00 27.00 Non-Mill Use 15.00 15.75 Total Domestic Demand 320.00 307.75 Available Surplus 105.00 93.00 Exports 55.00 63.00 Closing Stock 50.00 30.00
Cotton association of india 2 nd January, 2018 7 UPCOUNTRY SPOT RATES (`\Quintal) December 2017 2017-18 Crop Growth P/H/R P/H/R GUJ KAR M/M P/H/R M/M/A M/M/A P/H/R M/M/A M/M/A P/H/R M/M/A GUJ M/M/A/K GUJ M/M/A/K M/M/A/K/T/O A/K/T/O M(P)/K/T G. Standard ICS-101 ICS-201 ICS-102 ICS-103 ICS-104 ICS-202 ICS-105 ICS-105 ICS-105 ICS-105 ICS-105 ICS-105 ICS-105 ICS-105 ICS-105 ICS-105 ICS-105 ICS-105 ICS-106 ICS-107 Grade Fine Fine Fine Fine Fine Fine Fine Fine Fine Fine Fine Fine Fine Fine Fine Fine Fine Fine Fine Fine Staple 22 mm 22 mm 22 mm 23 mm 24 mm 26 mm 26 mm 26 mm 27 mm 27 mm 27 mm 28 mm 28 mm 28 mm 29 mm 29 mm 30 mm 31 mm 32 mm 34 mm Micronaire 5.0-7.0 5.0-7.0 4.0-6.0 4.0-5.5 4.0-5.5 3.5-4.9 3.0-3.4 3.5-4.9 3.5-4.9 3.0-3.4 3.5-4.9 3.5-4.9 3.5-4.9 3.5-4.9 3.5-4.9 3.5-4.9 3.5-4.9 3.5-4.9 3.5-4.9 3.0-3.8 Strength/GPT 15 15 20 21 23 26 25 25 26 26 26 27 27 27 28 28 29 30 31 33 1 11417 11614 8183 9139 9842 10348 9505 9983 10573 9701 10264 10657 10348 10432 10517 10601 10714 10967 11614 14229 2 11417 11614 8183 9139 9842 10404 9505 9983 10629 9701 10264 10714 10348 10432 10517 10601 10714 10967 11614 14229 4 11473 11670 8267 9195 9926 10461 9561 10039 10686 9786 10292 10770 10376 10517 10545 10686 10742 11023 11698 14369 5 11445 11642 8267 9195 9983 10432 9561 10039 10686 9786 10292 10742 10320 10517 10489 10686 10742 11023 11698 14510 6 11445 11642 8352 9139 10067 10432 9561 10039 10601 9786 10292 10714 10320 10517 10461 10686 10742 11023 11698 14650 7 11445 11642 8408 9139 10067 10432 9561 10039 10601 9786 10292 10714 10320 10517 10461 10714 10742 11023 11698 14650 8 11445 11642 8492 9139 10067 10489 9617 10095 10657 9842 10292 10770 10320 10601 10545 10798 10826 11107 11782 14735 9 11445 11642 8520 9167 10095 10517 9645 10123 10686 9870 10320 10798 10348 10629 10573 10826 10882 11135 11838 14819 11 11445 11642 8548 9195 10123 10573 9673 10151 10742 9898 10348 10854 10376 10686 10629 10882 10911 11164 11867 14847 12 11417 11614 8548 9195 10123 10629 9673 10151 10798 9898 10348 10911 10376 10686 10629 10882 10911 11135 11867 14988 13 11389 11585 8520 9167 10095 10601 9645 10123 10770 9870 10320 10882 10348 10657 10601 10854 10882 11220 11867 15129 14 11529 11726 8605 9251 10179 10714 9729 10208 10882 9954 10404 10995 10432 10742 10686 10939 10967 11304 11951 15269 15......... MARKET CLOSED......... 16 11642 11838 8717 9364 10292 10939 9814 10292 11107 10179 10629 11220 10686 10995 10911 11192 11220 11529 12176 15691 18 11642 11838 8661 9336 10236 10854 9758 10236 11023 10123 10545 11135 10629 10939 10826 11107 11135 11445 12092 15607 19 11642 11838 8520 9336 10123 10770 9701 10179 10939 10067 10489 11051 10573 10882 10770 11051 11107 11360 12092 15607 20 11642 11838 8520 9336 10123 10770 9701 10179 10939 10067 10489 11051 10657 10882 10826 11051 11107 11473 12092 15607 21 11726 11923 8605 9392 10179 10854 9758 10264 11023 10095 10545 11135 10770 10967 10911 11135 11192 11585 12148 15691 22 11810 12007 8802 9589 10376 11051 9842 10320 11220 10151 10629 11332 10967 11164 11192 11360 11445 11810 12373 15860 23 11810 12007 8830 9617 10376 11079 9842 10320 11248 10151 10629 11360 10967 11164 11248 11389 11473 11838 12373 15860 25......... H O L I D A Y......... 26 12035 12232 8886 9673 10517 11332 9898 10404 11501 10264 10742 11614 11079 11248 11360 11529 11585 11951 12485 16085 27 11979 12176 8886 9673 10517 11276 9898 10404 11445 10264 10742 11557 11079 11248 11360 11529 11585 11951 12485 16085 28 11754 11951 8886 9673 10517 11304 9983 10489 11473 10264 10742 11585 11107 11276 11389 11585 11642 11951 12485 15944 29 11642 11867 8858 9645 10489 11248 9983 10489 11445 10264 10742 11557 11107 11248 11360 11557 11614 11895 12429 15888 30 11642 11867 8858 9645 10489 11248 9983 10489 11445 10264 10742 11557 11107 11248 11360 11557 11614 11895 12429 15888 H 12035 12232 8886 9673 10517 11332 9983 10489 11501 10264 10742 11614 11107 11276 11389 11585 11642 11951 12485 16085 L 11389 11585 8183 9139 9842 10348 9505 9983 10573 9701 10264 10657 10320 10432 10461 10601 10714 10967 11614 14229 A 11595 11794 8580 9347 10193 10782 9725 10210 10963 10001 10475 11070 10623 10841 10840 11050 11104 11407 12035 15260 H = Highest L = Lowest A = Average
8 2 nd January, 2018 Cotton Statistics & News Sr. No. Growth UPCOUNTRY SPOT RATES Standard Descriptions with Basic Grade & Staple in Millimetres based on Upper Half Mean Length [ By law 66 (A) (a) (4) ] Grade Standard Grade Staple Micronaire Strength /GPT 1 P/H/R ICS-101 Fine Below 5.0-7.0 15 22mm 2 P/H/R ICS-201 Fine Below 5.0-7.0 15 22mm 3 GUJ ICS-102 Fine 22mm 4.0-6.0 20 4 KAR ICS-103 Fine 23mm 4.0-5.5 21 5 M/M ICS-104 Fine 24mm 4.0-5.0 23 6 P/H/R ICS-202 Fine 26mm 3.5-4.9 26 7 M/M/A ICS-105 Fine 26mm 3.0-3.4 25 8 M/M/A ICS-105 Fine 26mm 3.5-4.9 25 9 P/H/R ICS-105 Fine 27mm 3.5.4.9 26 10 M/M/A ICS-105 Fine 27mm 3.0-3.4 26 11 M/M/A ICS-105 Fine 27mm 3.5-4.9 26 12 P/H/R ICS-105 Fine 28mm 3.5-4.9 27 13 M/M/A ICS-105 Fine 28mm 3.5-4.9 27 14 GUJ ICS-105 Fine 28mm 3.5-4.9 27 15 M/M/A/K ICS-105 Fine 29mm 3.5-4.9 28 16 GUJ ICS-105 Fine 29mm 3.5-4.9 28 17 M/M/A/K ICS-105 Fine 30mm 3.5-4.9 29 18 M/M/A/K /T/O ICS-105 Fine 31mm 3.5-4.9 30 19 A/K/T/O ICS-106 Fine 32mm 3.5-4.9 31 20 M(P)/K/T ICS-107 Fine 34mm 3.0-3.8 33 (Note: Figures in bracket indicate prices in Rs./Candy) Spot Rate (Upcountry) 2017-18 Crop December 2017 (Rs./Qtl) 25th 26th 27th 28th 29th 30th 12035 11979 11754 11642 11642 (42800) (42600) (41800) (41400) (41400) 12232 12176 11951 11867 11867 H (43500) (43300) (42500) (42200) (42200) 8886 8886 8886 8858 8858 (31600) (31600) (31600) (31500) (31500) 9673 9673 9673 9645 9645 (34400) (34400) (34400) (34300) (34300) O 10517 10517 10517 10489 10489 (37400) (37400) (37400) (37300) (37300) 11332 11276 11304 11248 11248 (40300) (40100) (40200) (40000) (40000) 9898 9898 9983 9983 9983 L (35200) (35200) (35500) (35500) (35500) 10404 10404 10489 10489 10489 (37000) (37000) (37300) (37300) (37300) 11501 11445 11473 11445 11445 (40900) (40700) (40800) (40700) (40700) I 10264 10264 10264 10264 10264 (36500) (36500) (36500) (36500) (36500) 10742 10742 10742 10742 10742 (38200) (38200) (38200) (38200) (38200) 11614 11557 11585 11557 11557 D (41300) (41100) (41200) (41100) (41100) 11079 11079 11107 11107 11107 (39400) (39400) (39500) (39500) (39500) 11248 11248 11276 11248 11248 (40000) (40000) (40100) (40000) (40000) A 11360 11360 11389 11360 11360 (40400) (40400) (40500) (40400) (40400) 11529 11529 11585 11557 11557 (41000) (41000) (41200) (41100) (41100) 11585 11585 11642 11614 11614 Y (41200) (41200) (41400) (41300) (41300) 11951 11951 11951 11895 11895 (42500) (42500) (42500) (42300) (42300) 12485 12485 12485 12429 12429 (44400) (44400) (44400) (44200) (44200) 16085 16085 15944 15888 15888 (57200) (57200) (56700) (56500) (56500)