NEW DELHI: An increase in the cost of cotton production by 17 per cent to $ 1.22 per kg of lint in the last three years is a big concern for all growers across the world, the International Cotton Advisory Committee said.

“The rising cost of production is a major concern to all producers around the world. Lowering the cost of production is a complex challenge, and there is no easy solution appropriate for all regions,” the ICAC said in a statement.

The major contributors to the cost of production vary on the basis of the production system, level of technology and the rising cost of labour and inputs, it said.

A recent survey conducted by ICAC, however, highlighted that the lower yield in 2009—10 compared to 2006—07 was the main factor for the rise in production costs.

According the survey, India has the lowest production cost for cotton worldwide because of the recent increase in yield and the high value of seeds. The value of cotton seeds in India was 3 to 4 times greater than the cost of ginning, it added.

On the contrary, the US, Colombia and China had the highest costs of production. The average net cost of output in Asia and West Africa was about $ 1.15 per kg, it said.

The average cost of production of cotton lint globally rose to $ 1.22 per kg in 2009—10, 18 cents more it was three years ago. The cost of production of seed cotton, too, increased to $ 0.43 per kg in the review period.

The ICAC said that labour costs are increasing even in developing countries and some countries are encouraging mechanisation and the use of herbicides.

“Biotech cotton can help to lower the cost of production in some cases, but it is not appropriate in all production systems,” it noted.

According to the ICAC, world cotton production is expected to rebound by 16 per cent to 25 million tonnes in 2010—11 from 21.8 million tonnes last year.