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Highlights

* Cotton outlook remains supportive as higher demand from the textile industries.

* Cotton sowing across India has reached 116.17 lakh hectares compared to previous season sowing at 116.38 lakh hectares during the same time.

* Global Cotton stock for the 2021-22, has been revised lower by 50,000 bales. In the other estimates for 2021-22, as largely offsetting changes in production and consumption do little to offset lower estimated beginning stocks.

* Exports are 200,000 bales lower than in July, and ending stocks are 300,000 bales lower, equating to 17% of expected use, the same as in 2020/21. Lower production is reducing this month's 2021-22 global ending stocks forecast slightly.

* World production is forecast 546,000 bales lower as reduced production in Brazil, the United States, and Uzbekistan offsets higher projections for Australia, Mali, and Tanzania. Consumption is forecast slightly higher, up 170,000 bales, with gains for Bangladesh and Pakistan.

* World 2021-22 cotton ending stocks are projected at 87.2 million bales, about 500,000 bales lower than in July, and 4.6 million lower than in 2020-21.

* The area under cotton across India in the 2021-22 (Jul-Jun) season was at 11.7 mln ha, by 8.3% from a year ago, data from the farm ministry showed.

* USDA has scaled down its estimate for global production of cotton in 2021-22 (Aug-Jul) to 118.8 mln bales from 119.4 mln bales projected a month ago.

* The USDA has maintained its estimate for cotton output in India at 29.0 mln bales in 2021-22 (AugJul).

* The Cotton Association of India has scaled up its export estimate for 2020-21 (Oct-Sep) to 7.7 mln bales from 7.2 mln bales projected earlier. In the current marketing year, India shipped around 7.0 mln bales till July.

* The International Cotton Advisory Committee has scaled up its forecast for global prices in 2021-22 (Aug-Jul) as ending stocks for the ongoing season are estimated to be lower.

* In the Union Budget for 2021-22 (Apr-Mar), Finance Minister Nirmala Sitharaman proposed customs duty of 5% on cotton and 10% on cotton waste. She also proposed an Agriculture Infrastructure and Development Cess of 5% on cotton, taking the overall customs duty to 10%. Customs duty on raw silk and silk yarn or yarn spun from silk waste has been increased to 15% from 10% earlier.

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