India: cotton crop to increase 15%
India-based online commodity exchange National Commodity and Derivatives Exchange (NCDEZ) has released a report claiming that cotton production in India is expected to be 6.8 million tonnes (40 million bales of 170 kg each) in 2011-12.
Cotton production stood at 33.9 million bales in the 2010-11 crop year (July-June), as per the government’s second advance estimate released in February.
“The market expects the cotton output to reach a new high of 6.8 million tonnes in the next season as the rally in prices is expected to spur the farmers to boost planting,” NCDEX stated in its cotton overview for March 2011.
According to Cotton Outlook (Cotlook), a cotton trade journal, cotton production in India for the 2011-12 season is estimated to be 5.9 million tonnes, the report added.
The area under cotton rose by 8.3% to 11 million hectares in 2010-11 and experts believe that area would again rise this year as farmers received good remunerative prices last year.
“We expect the area under cotton crop in the country to increase by 15%,” said Cotton Association of India president, Dhiren Sheth.
According to the revised estimates of United States Department of Agriculture (USDA) cotton output is expected to go up in India in the 2010-11 season.
Among the major cotton producers, production is expected to decrease in China and in Pakistan, due to crop damage caused by inclement weather, the NCDEX report said.
