Cotton Production may Drop by 10-15 Lakh Bales

Cotton Production may Drop by 10-15 Lakh Bales

The cotton production has been anticipated to be at the level of 390 lakh bales during 2015-16, but the actual production likely to see a drop by 10 to 15 lakh bales, as per industry body report.

According to SIMA Cotton Research and Development Association (CDRA), the decline in cotton production is attributed to whitefly attack in Punjab, Haryana, Rajasthan and inadequate rains in Gujarat, Maharashtra and Karnataka.

Cotton export was badly affected during the season and as per trade estimates, it stood at 55 lakh bales in 2014-15, as against Cotton Advisory Board estimate of 70 lakh bales, whereas exports in the previous year stood at 118 lakh bales, the report said.

Cotton consumption by mills in 2014-15 stood at 300 lakh bales, 6.15 per cent higher than previous year’s 286 lakh bales.

The MSP of cotton for 2015-16 has been increased by 50 per quintal for both medium and long staple cottons. MSP for medium and long staples is increased to 3,800 and 4,100 per quintal.

Though India was expected to become the largest producer of cotton, surpassing China in 2015-16, the country still faces shortage of extra-long staple cotton and import of the same is expected to increase.