Acreage spike to fuel cotton output

Production of extra-long staple cotton is seen rising in the cotton year 2006-07 (October-September), compared with the year-ago period, on the back of initiatives to increase acreage and plans to increase the use of hybrid seeds, industry players said.

"The output would definitely rise," said K Selvaraju, secretary, Southern India Mills Association, who estimated that the increase could be as much as "one-and-a-half times this year's output."

In 2005-06, output was estimated at 4,00,000 bales (1 bale = 170 kg).

The association's cotton development and research arm plans to promote Sima HB-3, a hybrid variety, in Madhya Pradesh, Karnataka and Tamil Nadu.

It plans to raise the crop on 1,000 acres in the coming season.

Some seed manufacturers such as Mahyco and Rasi Seeds also have plans to up the acreage under Bt extra-long staple cotton. Mahyco, for instance, has been reported as saying that its MRC-6918 Bt variety could be sown over 10,000 acres in Tamil Nadu this July, up from 1,500 acres last year.

D K Nair, secretary general, Confederation of Indian Textile Industry, said, "We are making efforts to increase area under extra-long staple cotton. Our effort will be to inform people (farmers). As area under Suvin cultivation cannot be increased immediately, our present effort is to step up production of DCH-32, which is raised mostly in the southern states."

Industry players believe it will not be tough to persuade farmers to grow superfine varieties. "Farmers, considering the strong prices earlier in the season, are likely to be attracted towards extra-long staple cotton," said A Ramani, joint secretary of South India Cotton Association.

Before cooling down, DCH-32A rose sharply between November 2005 and January 2006, peaking at just below Rs 13,000 per 100 kg.

The price then was 50 per cent higher than the levels recorded a year ago.

Mills, major consumers of extra-long staple cotton, in turn passed on the increase to yarn consumers.

Nair attributed the increase to the demand-supply gap that dogs the local market.

In 2005-06, the country's requirement of extra-long staple cotton is estimated at 9,00,000 bales, compared with output of 4,00,000 bales.

"With the needs of the spinning industry likely to continue increasing, the gap will also increase," Nair said.

Therefore, he said, any additional output will easily find buyers and will not lead to a drastic fall in prices.

Also, Ramani said, superfine cotton has been used in a wide range of non-conventional applications, like denim, in recent times.

However, with Indian imports of extra-long staple cotton being significant, an estimated increase in production of foreign varieties such as Pima could also impact the market, he said.

The US Department of Agriculture's planting intent for the coming season will become clearer in the weeks to come.

Initial indications are that there will be a healthy increase of between 10 per cent and 25 per cent in the area brought under extra-long staple cotton cultivation globally, Ramani said.