Maharashtra Cuts Cotton Forecast On Worm Infestation

Natural Fibers

Maharashtra Cuts Cotton Forecast On Worm Infestation

According to state government officials, Maharashtra, India's second largest cotton producing state, has cut its forecast for output of the fibre by 37% from its September outlook as pest infestation has reduced yields.

Maharashtra's output is now forecast to drop to 6 million bales of 170 kg each for the 2017/18 marketing year that started on October 1. That is down from 10.7 million bales produced in the 2016/17 marketing year.

The forecast is down because of an infestation of the pink bollworm that has cut yields. The drop in the output could lift local prices and reduce exports from India. "As harvesting started, farmers realised the impact of the pink boll worm pest on the crop. Yields were substantially lower than normal," said government officials. Maharashtra usually accounts for over a quarter of the India's production, which the government has estimated at 37.7 million bales for the current marketing year. The reduction in Maharashtra's production will slash the country's output and keep prices firm in the local market, said Pradip Jain, owner of cotton trader Mahavir Ginning & Pressing.

Cotton prices have surged 12% in the past eight weeks as spot markets were getting lower than normal supplies from the new season crop. India's cotton exports could fall to 5 million bales, nearly a quarter below earlier estimates.