The Hindu Business Line : Cotton acreage seen up 10 pc this season

THE area under cotton is likely to rise by 10 per cent during kharif sowing mainly on farmers' hope that demand and prices will be high like last year.

``Sowing is nearing completion in North India and it has begun in other places. Our findings show that the area under cotton will rise in almost all the States where the crop is grown,'' industry sources said.

Cotton is grown in Punjab, Haryana, Ganganagar tracts in Rajasthan, Gujarat, Maharashtra, Madhya Pradesh, Karnataka, Andhra Pradesh and Tamil Nadu. Among these States, cotton is grown as a summer crop in Tamil Nadu. In other States, it is one of the major kharif crops.

When contacted, Mr D.K. Nair, Secretary-General, Indian Cotton Mills Federation, said cotton acreage was likely to rise in view of good prices the farmers got last year.

``Despite a higher crop, farmers received good prices,'' he said. Cotton production during the October 2003-September 2004 season is projected at over 165 lakh bales (of 170 kg) from 136 lakh bales the previous year.

Current sowing during the kharif is for the 2004-2005 crop.

According to the Agricultural Ministry, 12.8 lakh hectares (lh) have been brought under cotton till May 27. During the same time last year, 9.4 lh were under cotton. Most of the areas covered so far have been in Punjab and Haryana where a total of 10.4 lh have been brought under cotton against 7.4 lh last year.

Growers realised better prices for cotton as global production was hit by dry weather in the US and Australia.

``Besides good prices, the yield was also better,'' Mr Nair said. According to him, the yield increased from 300 kg per acre to around 350 kg per acre. ``Growers got good returns on account of higher yield also,'' he said.

Besides these factors, exports also buoyed up the growers.

``Export demand, particularly from South-East Asia and Pakistan, helped to keep the prices firm,`` the sources said.

"We had very good export orders that could be between six lakh to eight lakh bales," Mr Nair said.

The orders for export are against a meagre 50,000 tonnes during the last few years.

"Poor crop in Pakistan and rising freight rates helped our exports," the sources said.

The area under cotton is expected to increase also because some of the farmers in North India are expected to switch back to cotton from grains. "Since grains, especially rice, are not getting them good price, this time those growers could sow cotton," the sources said.