Due to the high existing prices, the Cotton Association of India (CAI), the sector's leading trade group, expects the area under the fibre crop to expand by 20-25 percent in the upcoming planting season across all 10 producing states.
"Orders and demand for cottonseed from dealers around the country have surged by 50-60%, according to some cotton manufacturers, and this need will continue to expand in the coming months." Based on the increasing demand for cottonseed and higher cotton rates, it appears that the sowing area will expand by 20-25 percent in all ten cotton-growing states," CAI President Atul Ganatra recently told the Agriculture Ministry.
"As of today, kapas (raw cotton) rates in India range from $900 to $10,000 per quintal, and cotton farmers are overjoyed at the higher price. "This increased kapas rate will entice farmers away from other crops such as soybean, peanuts, and chilies and towards cotton in a large way," CAI predicted.
Farmers in Maharashtra are expected to switch from soybeans to cotton in large numbers, according to CAI. Soybean prices are currently hanging around 6,000 per quintal, while raw cotton prices are hovering around 10,000 per quintal. Similarly, groundnut prices in Gujarat are over 5,500 per quintal, while cotton prices are around 10,000. Farmers in Gujarat will switch from groundnut to cotton, while farmers in South India will switch from chilli to cotton.
Increase in MSP sought
CAI has also proposed a moderate increase of 3-5 percent in the fibre crop's minimum support price (MSP) to protect growers' interests. CAI has proposed a greater MSP rise of 25-30% for the upcoming cropping season for the Extra Long Staple (ELS) cotton, which is currently being imported, in order to entice growers.
CAI has also advocated for the removal of price controls on cottonseed sales. "If price controls are abolished, seed companies will be able to boost seed rates and provide new technology seed to farmers, allowing us to increase our cotton production, which is currently the lowest in the world at around 475 kg compared to the world average of 800 kg," says the expert.
Cotton Output
Cotton production has remained stable at around 350 lakh 170 kg bales over the last five years, while consumption has increased from 310 lakh to 345 lakh bales. "We'll have to import a lot of cotton if we don't increase our cotton production in the coming years," Ganatra said. He also suggested that India consider following Brazil's lead, which is achieving yields of 1800 kg using new seed technology.
