India, the world's second top producer of cotton, stepped up pressure on sluggish exporters on Friday as the farm minister gave them more time to organise overseas sales and suggested export levels could rise. India, the world's second-biggest producer, had permitted 5.5 million bales for exports from October 1 but met a poor response because rains hit harvests.
An initial deadline was extended until February 25 for 1.7-1.9 million bales which went unshipped. Export deals have picked up pace due to an increase in arrivals in local markets but still short of meeting the quota. "The export window for India is open until March as the American cotton crop, which is in very good condition, will start coming to the market," Sharad Pawar told reporters.
Decisions on exports are made by the trade ministry but Pawar's views are critical in shaping export policy. Increased exports also have an knock on effect on domestic prices, giving a double benefit to farmers. Overseas demand for Indian cotton has risen after bad weather hit crops in China and Pakistan, both leading consumers.
At 1434 GMT, the New York cotton futures contract was up 2.62 percent at $1.569 per lb. Indian textile mill owners want more cotton available domestically rather than see Indian product used in competitors' materials. Pawar, whose portfolio makes him sensitive to farmers' concerns, said India could consider further exports as output increased.
"We expect the cotton production to be slightly higher than the initial estimates. We will have to give a serious thought on further exports," he said. Pawar said India's cotton output in the current year from October may top 33.5 million bales as against 29.5 million bales in the previous year.
GRAINS Pawar said production of wheat would be better than last year as current cold conditions over the grain bowl of northwest India aid maturity of the main winter food crop. "Overall the wheat crop is very good," the minister said. India, the world's second-biggest wheat producer, is expected to produce 82 million tonnes in 2011, the fourth straight year of surpassing domestic demand. "It is extremely good in Punjab, Haryana and western Uttar Pradesh," he said. India produced an all-time high 80.71 million tonnes of wheat in 2010. "My observation is that the harvest will be better than the last year," he said.
The minister also said there was no problem in supply of rice despite the grain being hit by unseasonal rains last year. "In terms of quantity, there is no problem," he said. Pawar predicted the country's farm sector growth at 3.5 percent for the next fiscal (April-March) amid higher food stocks.
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