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Cotton production for the new season starting October is likely to be higher about five per cent than the current season at 372 lakh bales (of 170 kg), according to the Cotton Association of India.
In a statement releasing the first estimate of the cotton crop, the association said that the higher production would be despite the acreage remaining unchanged. According to the Cotton Advisory Board, on which farmers, Government officials, textiles industry, traders and exporters are representatives, area under cotton this season was 116.14 lakh hectares, down 5 lakh hectares from last season.
“Timely rains will result in higher yields. Gujarat has seen over 10 per cent rise in acreage on good monsoon this year compared to last year, when drought conditions affected plantings,” the association said.
Meanwhile, the association has put the current season’s production at 355.75 lakh bales against a record 373.25 lakh bales in 2011-12.
A balance sheet drawn by the association showed surplus stocks at 140.96 lakh bales.
Despite this projection, cotton prices are near a three-year high of Rs 47,000-47,500 a candy (of 356 kg) for Shankar-6, the variety that is in demand for exports. Prices are surging since inventories are low with spinning mills.
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