Will the area under cotton decline next season, given that mills have opted to import despite the sufficient volumes in the domestic market?

Industry sources say this is unlikely as the prices are at least 25 per cent higher than in the last season. With good realisations, farmers will be incentivised to increase the area under cotton, they add.

“When the realisation is better for the farmer, why would he think of shying away?” an industry expert reasoned. “In Telangana, cotton farmers regret their decision not to cultivate the fiber, given that the realisation is at least 25 per cent more than in 2015-16.”

The average price realised by farmers has risen from ₹93 a kg last year to ₹120/kg this season.

When the domestic fibre ruled at under ₹100/kg, mills imported cotton at around ₹120/kg last year; this year the price variation has not been as wide, and the fiber is aplenty. But mills cite fiber quality and better yarn realisation to defend their decision to import.

It is learnt that the Cotton Corporation of India has secured approval to procure 15 lakh bales this season, but has so far procured only one lakh bales.

The area under cotton cultivation crossed 100 lakh hectares in 2009-10, and has gone up since then. And although the area under cultivation fell in 2016-17, production did not drop, and in fact rose from 338 lakh bales to 346 lakh bales.

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