Less Farming In Maharashtra, Gujarat & Punjab, But Yields Rise In GM Fields
Agencies NEW DELHI
COTTON production may not witness a significant fall despite reduction in acreage by about 500,000 hectares in 2008-09, thanks to better yield expected from increasing cultivation of genetically modified (GM) Bt-cotton.
Area under cotton cultivation declined to 85.9 lakh hectares till August 17 from 90.7 lakh hectares on the same period last year, said the government data. "While area under cultivation has shrunk, it will not have much impact on the output, as more than 80% of farmers have planted Bt cotton this year," president of the Confederation of Indian Textile Industries PD Patodia said. The acreage under Bt cotton plantation continues to rise with farmers sowing the transgenic seed in more than 80% of sowing area, compared with about 65% last year. So far, the government has approved 263 hybrid varieties.
The acreage under cotton has come down because of deficient rainfall in some of the growing areas like Maharashtra and Gujarat. Further, recent floods in parts of Punjab has worsened the situation.
While the textile industry is expecting a good yield despite low acreage, it is faced with high cotton prices on the back of strong export demand. Any setback in the domestic production may give a further jolt to yarn-makers.
Lower output may push up average price in the new season. Advance deals for December delivery is up 14% compared to last year, at Rs 24,000-24,500 per candy. "The prices will certainly come down in coming months when arrivals start, but it would be difficult to ascertain the extent of fall," Mr Patodia said.
The expected fall in output is mainly due to a drop in the area under cotton in the year ending September 2009, for which sowing is currently on. Acreage is seen down 6.6% at 8.9 million hectares, he said.
The acreage in the year ending September 2008 is estimated at 9.5 million hectares, as per the Cotton Advisory Board (CAB).
Demand for cotton by mills in India is estimated at about 20.7 million bales in 2007-08, according to CAB and exports is seen at 10 million bales.
India produced about 315 lakh bales of cotton in 2007-08 but prices saw a sharp increase by over 40% between January and June.
Bob Hope - "You know you are getting old when the candles cost more than the cake."
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