As farmers are shifting to other lucrative options like soyabeans and corn, the production of cotton in India, the second largest producer is expected to fall by 10 percent according to Confederation of Indian Textile Industry (CITI).
The farmers are expected to plant less than 110 lakh hectares under cotton this year as compared to a record 121 lakh hectares planted in 2011-12 period. This is expected because farmers are inclining more towards other commodities as there has been a fall in cotton prices against last year.
Last year, the prices were Rs 63,000 per candy while, it is in the range of Rs 33,000 and Rs 34,000 per candy at present. One candy is equal to 356 kg. However, the current cotton prices are above the average rates in last five years.
Recently, Centre for Monitoring Indian Economy (CMIE) in its monthly report said that in 2012-13, the acreage of cotton and sugarcane is expected to decline and as a result it will limit production of non-food crops to lower level than the year before. In the FY 12 a sharp increase in cotton acreage had resulted in record production of 35 million bales. In spite of this excess production there was no demand during the corresponding marketing season.
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