Notwithstanding fears of severe scarcity for cottonseeds, the cotton acreage is all set to shoot up in the next kharif, with farmers pulling off from maize, soybean and sunflower to cash in on the huge demand for white gold in the market.

Seed industry sources said the demand could grow up to three crore packets (450 gm each) for the next season against the availability of 2.60 crore packets in the organised sector. There could be a shortfall of 40 lakh packets this year due to hostile weather conditions, labour issues and increased production costs. Unbranded local players could step in to meet the additional demand, while seed companies struggle to increase their share.

Lure of very high price for cotton and bleak prospects of making any money in seed production in the back drop of increased cost of production have led the seed growers to shift to commercial cotton cultivation.

With an imminent scarcity for seeds, farmers might have to depend on local players to fill in the gaps. “There are only 7-8 recognised brands. There are about 100 unbranded local players who might chip in,” a senior executive of Nuziveedu Seeds, told Business Line .

While Maharashtra might witness a reduction in sorghum and soybean area, Andhra Pradesh had already registered a sharp decrease in maize and sunflower area as farmers go for more cotton. The situation could worsen because farmers have begun to use two packets (instead of one packet) an acre.

Cotton Corporation of India put cotton acreage at 2.71 crore acres in 2010-11 against 2.54 crore acres the year before.

“This is going to be a serious problem this year. And might worsen the following year,” Mr Vidyasagar, Chairman and Managing Director of Vibha Seeds, told Business Line .

Mr K Bharat of Andhra Pradesh Rythu Sangham, the CPM-affiliated farmers' body, discounted the shortage argument. “There is huge quantity of seed lying in storage. They (seed firms) sold only 75 per cent of their stock last year and 65 per cent the year before,” he said.

In Andhra Pradesh, the farmers and seed industry are awaiting the Government decision on pricing of the seed. The seed companies demand a hike of Rs 300 on Bollgard-II seeds and Rs 200 on BG-I. Last year, the price was Rs 750 and Rs 650 respectively.

“If the Government doesn't increase the price, the seed might fly to the lucrative markets in the neighbouring States,” an NSAI member cautioned.

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