Cotton acreage in India, the world's second biggest producer, may rise by up to 15 percent in 2011/12 as record high prices in the current season may induce farmers to expand acreage, industry officials, traders and farmers said. Most farmers in the country usually start cultivation of the natural fibre crop in June, while harvesting begins from October.
"Prices have softened a bit in the past two months, but still we expect cotton acreage to go up in the range of 10-15 percent in the coming season," said Dhiren N Seth, President, Cotton Association of India. Cotton prices in India touched a record high of 61,700 rupees per candy of 356 per kilogramm (kg) on March 30, boosted by a rally in the world market.
Key New York May cotton futures hit an all-time high of $2.197 per lb on March 7 after adverse weather created a supply squeeze in the global market. According to traders, cotton acreage in the country could rise to a record 12.5 million hectares, surpassing the record high area of 11.16 million hectares in 2010/11.
However, much would depend on the monsoon as scanty and delayed rains in growing areas may force farmers to opt for other crops, traders said. Farmers in different states may slash area under soybean, groundnut and rice to boost cotton acreage, Sheth said. In the western state of Maharashtra, the top grower in the country, farmers may slash soybean acreage, while in Gujarat groundnut cultivation may be trimmed.
Both state governments are expecting an improvement in area under cotton. "Soybean farmers didn't get returns as good as cotton farmers. Many soybean farmers may opt for cotton this season," said Jayant Deshmukh, director of Maharashtra's agriculture department. Farmers in Maharashtra had cultivated cotton on 3.9 million hectares in 2010/11.
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