New Delhi, Apr 14 (PTI) India is likely to achieve a record cotton output in the 2011-12 season at 35 million bales as farmers are expected to put more area under the crop buoyed by higher prices, the US Department of Agriculture (USDA) said.
Cotton production of India, the world''s second biggest cotton producer, stood at 32 million bales in 2010-11 season (August-July). One bale is equal to 170 kg.
"India''s cotton production is forecast to increase to a record 25 million bales on expected record planting," the USDA said in its latest report.
The area under cotton may rise by 12 per cent this year at 12.5 million hectares due to record cotton prices. Bt cotton area is expected to reach 90 per cent of the total area this year, but share of unapproved Bt seeds may also rise, it said.
"Currently, cotton appears to be the most remunerative major crop in the country and few, if any, summer crops can match its potential returns for farmers given current expectations," the USDA noted.
For instance, prices of Shankar-6 cotton have more than doubled to Rs 1,67,880 per tonne in the last one year.
Similarly, prices of popular cotton varieties H-4 and DCH-32 have also increase to record levels, it said.
Cotton, a major cash crop, is planted from the end of April and harvested from October onwards.
The USDA report said while even larger area is certainly possible, especially if weather conditions at planting are favourable, then most farmers'' traditional tendency is to diversify their plantings as a hedge against risk.
"Concerns about the availability of seeds are expected to constrain significant area expansion. Seed companies have already expressed concern about seed supplies," it said.
It further pointed out that cotton yields are expected to be lower at 476 kg per hectare on the expectation of increased planting of lower quality seeds.
The report also observed that most of the Bt hybrids are of medium and long staple cotton (26-32 millimeters), which is resulting in declining production of short staple (below 22 mm) and extra long staple (35 mm and above).
The US body also said that India''s production is likely to oustrip demand this year. The domestic consumption is forecast at 29 million bales buoyed by economic growth and rise in population.
However, current higher cotton prices may eventually reflect in higher cotton textile products prices for consumers and likely to dampen demand for cotton clothing and textiles or cause consumers to shift to man-made fibre, it said.
On India''s overseas sales of cotton, the USDA has pegged exports at 5.1 million bales despite record domestic production.
