Year-ender: Bright outlook for cotton seed industry, says NSAI President

It has been a good year for Indian agriculture as prices of several agri commodities have gone up because of geopolitical issues. 

Excess rainfall in the South and in some parts of the country this year has helped farmers growing crops like paddy, sugarcane and maize. Farmers reaped good returns on higher prices internationally. 

Poor rains in States like West Bengal and Bihar have caused some concerns as it could lead to fall in production of paddy. We expect a normal rainfall next year and expect the farmers to cash in on the demand. 

The Russia-Ukraine war and the US banning the cotton grown in the Xinjiang region of China had resulted in a spike in cotton prices. This has helped cotton farmers in India in getting good returns. 

That the Xinjiang region contributes over 80 per cent to China’s overall cotton production shows how significant the US ban would be for India. There was a tremendous potential for cotton in the country as the domestic demand for the commodity is increasing significantly.  There is a demand for 60 lakh bales more to meet the consumption needs. Bangladesh, a major textile player in the world, is also dependant on us. The outlook for this crop is bright. While the country needs more of the commodity, the output witnessed a drop of 30-40 lakh bales, offering a significant opportunity for farmers. 

 The outlook for the cottonseed industry is bright as we expect an increase of up to 10 per cent in the area next time. The demand from the domestic and international markets would encourage farmers to increase the area.