There are expectations of a lower cotton yield in the major cotton producing belts of Punjab and Haryana in North India. Yields are expected to be lower by 20-25 percent in some areas in the current cotton season.
There are many reasons attributed to the low yields, but the main among them are that the cotton crop in Punjab was hit by a virus attack, which prevented full maturity of the cotton boll, while farmers in Haryana complain of low quality cotton seeds.
But the only saving grace is that raw cotton is commanding remunerative prices and in some cotton markets in Punjab, Haryana and Rajasthan, even higher than the Minimum Support Prices (MSP) given by the government.
Cotton traders are also expecting cotton prices to soar above the prevailing MSP in future days. According to Northern India Cotton Association, production is expected to decline by at least 20 percent in the current season.
According to Mr Rathi, President of the association, the yield in 2008-09 was 10-14 quintals per acre, but this year it will dip to only 8-10 quintals per acre and will also result in lower output to between 3.6-3.7 million bales against targeted output of 4.5 million bales.