The Cotton Association of India (CAI) is expecting the cotton production in the 2011-12 season to be not less than 340 lakh bales. The rise in production is on the back of a significant increase in cotton acreage due to higher prices and widespread rains across the cotton belt, coupled with higher cultivation of Bt cotton. On the same time the consumption is likely to be below 250 lakh bales, that will leave a huge carry-over stock amid prospects of output scaling new heights in the 2011-12 cotton season.
Cotton production has witnessed a good surge in recent years due to the rapid expansion of area under GM cotton. This uptrend was maintained in 2010-11, when production surged further to 325 lakh bales. Earlier, an USDA report has forecast that India’s cotton production in the ongoing 2011-12 marketing year that commenced in October will be down by 7.5 lakh bales to 34.25 million bales due to a likely dip in output in Maharashtra. Earlier, the USDA had pegged the country’s cotton production at 35 million bales for the ongoing marketing year (October-September).
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