Our Bureau Mumbai, Jan. 24
The Cotton Association of India (CAI) has contested the revised opening stock of 40 lakh bales arrived at the Cotton Advisory Board (CAB) meeting held on Wednesday. The Association feels that the correction undertaken by CAB is not enough and the opening stock for 2012-13 should be 50 lakh bales given the prevailing weak price trend.
CAB had made a one-time correction for the past errors by revising the opening stock to 40 lakh bales instead of 29 lakh bales shown as closing stock for the previous season. The various stock figures adopted at the successive meetings of the CAB were leading to lower stock estimates in the system and therefore CAI had urged the Board repeatedly to correct the same.
Such correction of past errors in the projection of crop data is a worldwide phenomenon and it is only right that India does not shy away from following the same practice, said Dhiren N. Sheth, President, CAI in press release on Thursday. CAI feels that a better option to correct the situation would have been to increase the crop output for the season 2011-12 by 11 lakh bales which the CAI even otherwise believes, is substantially higher.
(Source: The Hindu Businessline)