BAMAKO, July 25 (Reuters) - Heavy rain in Mali's cotton-growing regions could help the country to reach its production target of 650,000 tonnes despite a dry start to the season, the state-owned Malian Company for Textile Development (CMDT) said.

In May, West Africa's biggest cotton producer cut its 2016/17 season forecast to 650,000 tonnes from a previous estimate of 750,000 to 800,000 tonnes, without giving a reason.

Dry weather in June raised fears that even this reduced target would not be met.

"Since July 5 it has rained regularly almost every day in all of the cotton-growing regions," Ousmane Traore, a technical advisor to the CMDT, said.

"If the rain continues like this we have every reason to hope to reach our target," Traore said. He also said farmers had increased their seeding area by 2 percent this year.

The government raised prices and renewed subsidies in April to encourage farmers to expand production.

Last season's crop of 513,553 tonnes was far less than the 650,000-tonne target because of damage linked to late rain, the CMDT said.

Mali's cotton season runs from April and includes a growing phase from around May to October and a harvesting and sales period from roughly November to March. (Reporting by Tiemoko Diallo; Writing by Nellie Peyton. Editing by Jane Merriman)