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India to post record cotton output in 2011-12 season
02
Jan '12
India is poised to have a record cotton production of 34 million bales of 170 kg each in 2011-12 season, according to the apex cotton body of India.

Dhiren N Sheth, President of Cotton Association of India (CAI), said while the production is not expected to be below 34 million bales, the consumption may not cross 25 million bales, thus, there would be a huge carry-over stock left for next year.

He cited widespread rains in the cotton growing regions, increase in cotton acreage as farmers received good price last season, and higher usage of Bt cotton as the factors that have spurred the production of cotton in India this season.

He stated that the seasonal conditions that existed in 2010-11 were favourable for growth of cotton and it acted as a catalyst for farmers to increase the acreage of cultivation under cotton this year.

Farmers also cultivated cotton on additional area as cotton gives higher net returns compared to other crops that grow during the same season, he added.

In addition to higher yields, farmers also benefited owing to a decline in production costs after they started cultivating cotton with Bollgard II technology. Today, Bollgard I and Bollgard II technologies together account for nearly 90 percent of India's total area under cotton cultivation.

Actually, the surge in India's cotton production in the last few years can be traced to the rapid increase in area under GM cotton. The uptrend continued in 2010-11, when the country produced 32.5 million bales of cotton, Mr. Sheth said.

The CAI President said the likely slowdown in global economic growth in 2012 will also affect the demand for textile items, and hence the demand for cotton is likely to decrease in global market.

Fibre2fashion News Desk - India

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