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Growth prospect prompts cotton farmers to increase production

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Kalpesh Damor Ahmedabad
Last Updated : Jan 21 2013 | 2:54 AM IST

After a good harvest resulted in rich dividends in 2009-10, cotton farmers in Punjab, Haryana and Upper Rajasthan have started sowing for the next season.

Marketmen expect the acreage to rise across the country in cotton year 2010-11 (September-October), on the back of lucrative prices received by the farmers last year.

“Usually, sowing starts by mid-April in these regions, but the process was delayed by a fortnight as wheat harvest was late by 15 days,” said Rakesh Rathi, president, Northern India Cotton Association.

Punjab and Haryana are likely to witness a surge of 5-10 per cent in acreage, following a purchase of 496,000 hectares and 507,000 hectares under cotton cultivation in 2009-10, respectively. Rajasthan saw acreage of 444,000 hectares. Cumulative cotton production in these three states stood at 3.8 million bales (one bale weighing 170 kg).

According to the data available with Cotton Association of India (CAI), Punjab is estimated to have 1.45 million bales of production in the current cotton year, while Haryana and Upper Rajasthan 1.55 million bales and 800,000 bales, respectively.

“Higher prices of raw cotton is the main motivating factor for the rise in cotton acreage in Punjab and Haryana,” Rathi said. “Farmers also realised better returns on paddy crop, hence we will have to wait till mid-June to have a clear and factual picture.”

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Raw cotton prices across the country jumped substantially in 2009-10. Prices of Shankar-6 cotton variety moved up from Rs 22,000 per candy to 27,500 per candy at present. The current cotton season saw Shankar-6 prices surpassing the Rs 29,000 per candy.

“Farmers received equivalent and in some cases higher prices than Shankar-6 variety cotton in Gujarat. This will encourage them to take up cotton sowing leading to higher acreage,” said Kishor Shah of Central Gujarat Cotton Dealers Association.

Prospects for cotton crop across the country are bright in 2010-11. “Going by the prices of raw cotton, the trend is looking up for the next season,” said in top official in the Textile Commissioner’s office in Mumbai.

Marketmen estimate cotton acreage to go up by 10-12 per cent this year.

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First Published: May 11 2010 | 12:04 AM IST

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