HEADLINES:  

India's cotton output is likely to dip by two million bales to 32.3 million in the 2012-13 year as farmers are likely to switch to better-priced alternative crops amid unclear cotton export policy. But, domestic cotton consumption increased to 26 million bales in 2012-13, from 25.3 million bales in 2011-12.

However, India's exportable cotton supply was only six million bales in 2012-13, as against 11.75 million bales last year, given an expected drop in production and higher domestic demand.

If the government increases the minimum support price (MSP) for cotton significantly, planting intentions could shift and there would be a boom for the cotton industry in India.

There is some concern within the industry even as productivity has increased from an estimated 300 kg per hectare to 500 kg hectare since the introduction of biotech cotton in India.


The increasing prevalence of pests, the need for better fertilizer management, the spread of cotton into dry-land areas and seed quality are all cited as factors affecting yields in the Indian cotton scenario.

Given these ongoing challenges, yields are forecast at the five-year average of 500 kg per hectare,but however it is significantly lower than the global average of 740 kg per hectare.

It is to be noted that India's two-thirds of cotton is produced in Maharashtra, Madhya Pradesh, Gujarat and Odisha where much of the crop is rain-fed.

  INDIAN cotton Industry AT A Glance IN 2011 - 2012

  Cotton Association of India

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