Cotton acreage set to rebound in North India

Cotton acreage in the northern States of Punjab, Haryana and Rajasthan are set to rebound in the forthcoming kharif season as growers, buoyed by high prices, are seen switching back to the fibre crop from cereals, mainly paddy. Cotton planting for kharif 2017 is set to begin by mid-April.

According to cottonseed makers, farmers and traders, acreage under the crop will rise sharply in the North with a jump of about 20-25 per cent over last year’s 11.96 lakh hectares.

Last year, cotton acreage had drastically dropped in the North, mainly in Punjab, as farmers had suffered significant losses on account of crop damage inflicted by pest attacks, mainly the whitefly. Also, there was a shift towards the desi varieties last year as farmers moved away from Bt hybrids in several areas

“There is a good sentiment towards cotton. We expect some desi acreages to come back to hybrids,” said M Ramasami, MD of Attur, Salem-based Rasi Seeds, a major player in the northern markets. “We are looking to sell around 20-25 lakh packets in the forthcoming season as against last year's 15-16 lakh packets,” Ramasami added. North India’s cottonseed market is likely to expand this year to around 60-65 lakh packets of 450 grams each from last year’s 50 lakh packets. “Farmers are positive on cotton and the acreage this season could go back to the levels we had three years ago,” said Sanjay Chabbra, Senior Vice-President of DCM Shriram Ltd, the largest Bt cottonseed vendor in North India.

Cotton acreage in North India, which stood at a high of 15.55 lakh hectares in 2014-15, dropped to 13.90 lakh ha in the subsequent year and reached a low of 11.96 lakh ha in 2016-17 on rising pest attacks and declining yields. Cotton prices continue to rule firm across the country on a lower crop and steady demand. Moreover, cotton has yielded better returns in 2016-17 compared with other competing crops.

“North Indian farmers will switch from paddy to cotton due to better prices in the fibre crop. Also, the weather forecast of an El Nino impact — adverse for paddy — will make cotton a convenient choice,” said Sushil Phutela, Vice-President, Indian Cotton Association Limited.

Cotton acreage in Punjab will witness a sharp surge of about 60 per cent from the current 2.5 lakh hectares, he added. “Looking at bookings for cotton seeds and the farmers’ preference for cotton, we expect a sharp revival of cotton sowing in Punjab, with a 60 per cent surge in acreage,” said Phutela.

Cotton sowing will begin after April 15 and farmers expect one spell of rains to be sufficient for the initial sowing. “The favourable aspects are prices and the forecast about El Nino. This will discourage farmers to take up grain crops such as paddy. Cotton being a cash crop and having fetched a good price this year, we expect farmers to turn to cotton this kharif season,” said Bhagwan Bansal, a leading cotton trader in North India.

Meanwhile, the Union Agriculture Ministry has maintained a status quo on Bt cottonseed prices for the upcoming season.

A notification issued on March 10 kept the maximum sale price for BG-II Bt cotton at ₹800 per 450 gm.

Last year, the Centre had cut royalty fees payable to the technology providers of genetically modified (GM) Bt cotton seeds significantly and also the retail price of the seeds, bringing much cheer to nearly 8 million growers across the country.

However, the decision has caused some disappointment among seed industry players, who expected an increase in seed prices. “Even a 5 per cent increase would have been better. This will have a long term impact. It leaves very little room for the seed players to invest in innovation or R&D, and there will be increased investment in seed production,” said MG Shembekar from Ankur Seeds, a leading seed player in Maharashtra.

As per the notification, the price of the BG-I Bt cotton hybrid has been fixed at ₹635 for 450 gm and BG-II at 800 for 450 gm.

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