World-wide area under cotton cultivation is expected to go up eight per cent this season, the first increase in four years. As a result of this, world cotton output is expected to be 24.8 million tonnes, 13 per cent higher.
In 2010-11, the total area under cotton cultivation is likely to be 32.7 million hectares and this is primarily due to high cotton prices in 2009-10, said a report from Cotton Association on India.
In August 2009, beginning of the cotton year, international cotton prices were 64 US cents per lb which is currently hovering around 88 cents.
Around 90 per cent of the cotton is grown in northern hemisphere and in most parts of the cotton growing regions, incremental area under cultivation was as a result of farmers shifting from oilseeds or grains. US and India account for half of the projected increase in area. In regions like Turkey, Greece and the CFA zone, cotton production will rise after five years.
India’s crop is expected to be 5.5 million tonnes following higher area under crop and better weather conditions than last year, while Pakistan’s crop will be 5 per cent higher and will be at 2.2 tonnes.
China’s crop will be only marginal higher to 7.1 million tonnes. In fact in China, cool temperatures and generally unfavourable weather conditions have necessitated some replanting and have delayed the crop, said Cotton Association on India.
Only marginal increase in China’s crop will result in higher imports which is expected to be around 2.7 million tonnes, 21 per cent higher to fill the gap between production and consumption. US exports are expected to go up by 8 per cent to 2.9 million tonnes while India’s exports will fall to 1.2 million tonnes, as India has imposed restrictions like licensing for cotton exports.