The area under cotton cultivation in the country is expected to decline by 10-15% from the present 122 lakh hectares during this season (October-September) period. This decline can be attributed to scanty rainfall this year and due to farmers going by price perception for their crop.
Since the productivity in the major belts of Gujarat and Maharashtra would compensate for the fall in the acreage there will be no fear for any shortfall in the cotton production or availability.
Moreover, global availability and supply of cotton surpasses the demand for cotton and compared to domestic market the prices of the raw material is cheaper by 4 to 5 cents/pence outside the country. According to preliminary estimate report, 12 lakh bales of cotton were imported so far. Also as per the policy, the government will continue exports under Open General Licence (OGL).