A significant increase in cotton acreage on the back of higher prices and widespread rains across the cotton belt, coupled with higher cultivation of Bt cotton, has brightened the prospects of output scaling new heights in the 2011—12 cotton season.

Cotton production in the 2011—12 season is expected to be not less than 340 lakh bales, while consumption is likely to be below 250 lakh bales, thus leaving a huge carry-over stock, the Cotton Association of India (CAI) President, Mr Dhiren N Sheth said here.

On the domestic cotton scenario, he said seasonal conditions in 2010—11 were favourable for growth and development of the commodity, which motivated farmers to boost the acreage under cultivation with the crop.

In addition, cotton farmers kept in mind the high prices prevailing in 2009—10 and since cotton fetches higher net returns compared to competing crops, farmers brought additional area under cotton cultivation.

Besides higher yields, farmers continued to reap benefits from a reduction in production costs owing to the advantage derived from the cultivation of cotton with Bollgard II technology, which along with Bollgard I accounted for about 90 per cent of the total area under cotton.

There has been a surge in domestic production in recent years due to the rapid expansion of area under GM cotton. This uptrend was maintained in 2010—11, when production surged further to 325 lakh bales, Sheth said.

Mr Sheth also pointed out that the projected slowdown in global economic growth in 2011 and 2012 will affect the demand for textile products and therefore, demand for cotton fibre in the international market.