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Deficit rains may bring down India's cotton acreage
Aug '12
Owing to deficit rains this year, India’s cotton cultivation acreage is likely to contract by about 10-15 percent from the present 12.2 million hectares of land on which cotton was sown, Textile Commissioner Mr. AB Joshi has said.
He, however, added that there are no apprehensions regarding any reduction in production or availability of cotton, as the increased productivity in the major cotton growing belts of Maharashtra and Gujarat would make up for the contraction in acreage.
In addition to scanty rains, farmers’ insight about cotton prices would also contribute to the likely fall in cotton acreage.
Speaking on raw material availability for textile industry during the coming season, Mr. Joshi said there is surplus global cotton availability, and imported cotton costs around four to five cents per pence less than domestically produced cotton.
According to initial estimates, this year India has imported 1.2 million cotton bales till now, he said.
On continuation of exports under Open General Licence (OGL), he said that it is a Government policy and OGL would continue.

Fibre2fashion News Desk - India

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