Cotton output pegged at 24 mn bales

India's year to September 2007 cotton output is estimated at 24 million bales compared with 23.5 million bales in the current year on expectation of increase in planting, a report released by the US Department of Agriculture said.

"If achieved (24-million-bale output), this will be India's fourth consecutive bumper crop, and just below the record marketing year 2004-05 crop of 24.3 million bales," the report said.

It said cotton is likely to be sown over 9 million hectare this year, with nearly half of the sown area seen under genetically-modified Bt cotton. Bt cotton planting is expected to jump three-fold to 4.2 million hectare as government has approved 20 new Bt varieties for commercial cultivation, it said.

Cotton consumption during 2006-07 is forecast at 22.2 million bales, up 8 per cent year-on-year in the wake of strong domestic and export demand and lower prices of cotton compared with manmade fibre.

The farm department said India will continue to have an exportable surplus for the next two to five years until domestic consumption catches up with output surge.

Most exports would be of medium-to-long staple cotton to China and South East Asian counties.

According to the report, India's cotton exports are likely to rise to 3.5 million tonne next year from this year's export estimate of 3.2 million due to huge carryover stocks, expected higher production and lower prices compared with international prices.

The department, however, cautioned that the relative price movement of local cotton compared with world cotton during the upcoming season may temper its trade forecast volumes.