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India is set challenge China’s numero uno position in world cotton production. Thanks to genetically modified or BT cotton, India’s cotton sowing has surged to record high led by sharp increase in cotton acreage in Gujarat, Maharashtra, Karnataka and Andhra Pradesh.
As per the latest data available from government departments and industry sources, total cotton sowing in the country stood at 122.5 lakh hectares this year (2014-15) against about 115 lakh hectares last year (2013-14). Farmer and trader sources peg India's cotton production at 403 lakh bales this year.
India's biggest cotton producer, Gujarat's data on September 1 showed cotton sowing in the State has crossed 30 lakh hectares this kharif season against the three years average of 27.17 lakh hectares, showing an increase of 10.5 per cent. With rise in demand from yarn millers and new capacities coming to stream, cotton consumption in India has increased. This attracted more farmers to prefer the fibre crop over others.
On his visit to Gandhinagar on Thursday for a National Seminar on Farm Income Insurance, Union Agriculture Minister, Radha Mohan Singh congratulated the State Chief Minister Anandiben Patel for achieving record cotton sowing in the State. “In spite of late monsoon by one month, farmers in Gujarat have shown their mettle as cotton sowing is done on over 100 per cent area.”
Due to monsoon getting delayed by over a month, farmers preferred cotton over other crops like groundnut and pulses. “Cotton prices have already come under pressure due to higher stocks. Spot rates are quoting in the range of Rs 39,000 per candy (356 kg), but one month forward rates have slipped to about Rs 34,000 per candy,” said N K Sharma, managing director, Gujarat State Cooperative Cotton Federation Ltd (Gujcot).
International cotton prices too have come under pressure at around 76 cents per pound. In its latest report, International Cotton Advisory Committee (ICAC) noted, that in 2014-15, world cotton industry may witness fifth consecutive surplus season. “World production is forecast to decline by 4 lakh tonnes to 26.05 million tonnes while consumption could grow by 4 per cent to 24.4 million tonnes, resulting in a surplus of 1.65 million tons.”
According to initial industry and farmer body estimates, India’s cotton output is set to touch 403 lakh bales, out of which 144 lakh bales may come from Gujarat.
Industry experts maintained that at cotton production above 400 lakh bales, India will surpass China, which grows about 400 lakh bales of cotton. This will make India world’s largest cotton grower in the world.However, trade body, Cotton Association of India (CAI) has convened a meeting on Thursday to decide the sowing and production estimates.
Farmer sources and insiders maintained that cotton sowing has seen sharp surge in States such as Maharashtra, Rajasthan and Karnataka against last year. But with new spinning units coming on stream and exports set to surge to around 100 lakh bales, cotton balance will be maintained in the country, which would not let prices to drop significantly.
Currently, minimum support price (MSP) on cotton (raw) is fixed at Rs 4,000 per quintal. Farmers believe in the scenario of excess production, the Cotton Corporation of India (CCI) would have to be prepared to intervene if prices fall below Rs 4,000.
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