Indian Cotton Output Seen Rising 4% To 34.5 M Bales

Market News

Indian Cotton Output Seen Rising 4% To 34.5 M Bales

Cotton output is expected to increase 4% to 34.5 million bales (of 170 kg each) in the cotton year ending September on the back of sharp rise in yield. However, the acreage under cotton has dropped 11% to 10.84 million hectares (12.29 million hectares). The yield per hectare is expected to increase to 541 kg from 459 kg, according to the second advanced estimate released after the Cotton Advisory Board (CAB) met recently.

Export to decline

Kavita Gupta, Textile Commissioner and Chairperson of CAB, said cotton export is expected to decline to 6 million bales this year from 6.9 million bales last year with concern over availability of cotton in domestic markets. Exports to Pakistan have fallen drastically while Bangladesh accounted for 40% of total exports from India till May.

Next season

The area under cotton crop is expected to bounce back to 11.9 million hectares the next season and the output is set to grow in double digits, Gupta said. “We are expecting the area under cotton to increase as the monsoon was on time and farmers got a better price for their crop. So, some area under pulses was diverted to cotton,” she added. Data compiled by the Ministry of Agriculture till mid-August show 18% increase in cotton acreage for the crop year 2017-18 (October-September).

The use of home-grown cotton variety developed by the Central Institute for Cotton Research, Nagpur, has increased this year as there were reports of pest attack in Bt cotton variety, Gupta said.

The Indian Council of Agricultural Research has also come up with more native varieties, which are good in yield. Once they are commercialised in 2017-18, the area under the indigenous variety will increase further, she added.