June 19, 2012

India's 2012 cotton production likely down 10%

As farmers are shifting to other lucrative options like soy and corn, cotton production in India may drop by 10% this year, an industry body said.

"This year it (cotton production) may decline. It can't match last year's record," Confederation of Indian Textile Industry (CITI) Secretary General D K Nair said.

In 2011-12, farmers planted a record 121 lakh hectares under cotton. This year, it is expected to be less than 110 lakh hectares, he said.

Nair said farmers are also inclined to other commodities because there has been a decline in cotton prices against last year.

"Last year, it was INR63,000 (US$1,124) per candy. Currently, it is between INR33,000-34,000 (US$589-607) per candy." One candy is equal to 356 kilogrammes.

However, he said, the current cotton prices are above the average rates in last five years.