India Intelligence Report

 

 

 Cotton Output Up

  Industry estimates predict a rise in cotton output to 260-275 lakh bales against 245 lakh bales last year despite crop damage due to floods in Maharashtra and Gujaratearlier with the use of genetically altered and hybrid cotton seeds.
 

 

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Industry estimates predict a rise in cotton output to 260-275 lakh bales against 245 lakh bales last year despite crop damage due to floods in Maharashtra and Gujarat earlier with the use of genetically altered and hybrid cotton seeds. Besides, high cotton prices last season have encouraged farmers not to switch to their traditional Kharif crop.

Higher levels of production have already triggered significant interests from cotton importing nations such as China who import raw cotton to generate value added fiber and analysts say that cotton export will beat last year levels of 43 lakh bales. After the US , India is the 2nd largest exporter of cotton to China . While the US companies export cotton to get fiber and then process them to finished products that are generally then imported at cheaper prices for domestic consumption, Indian exporters generally look for quick money from exporting raw materials. China imports more than ½ of the world’s cotton exports of 9.3 million tons (mt) or about 450 lakh bales and India has headroom to grow to 70 lakh bales.

Despite the 8-10% rise of production in India , world cotton production is expected to fall marginally to 24.7 million tons (mt) or 1300 lakh bales even though the cultivated area remains at previous year levels. International cotton industry sources say that unfavorable weather conditions in the Northern Hemisphere, especially in the US , has affected global output.