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Indian cotton crop on the rise amidst acreage reduction

India expected to produce 35.1 million bales (170 Kgs) this season beginning in October. On 24th October, India’s official body, Cotton Advisory Board met in Mumbai and decided on this year’s first estimate of cotton production. This meeting was the first official meeting of this new season that began, October 1st.

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The new season’s production estimate is 1.3 million bales higher than the last year’s crop estimate of 33.8 million bales. Total cotton supply will be 41.1 million bales, with an opening stock of 4.3 million bales. The opening stock for last year beginning in October 2015 was 6.6 million bales.  Mill consumption is expected to be about the same as last year.

Exports this year will decrease from that of last year and it is pegged at 5 million bales.

Total acreage will be about 10.5 million hectares this season, which is a reduction of about 1.4 million hectares from the last season ending in September 2016.

Amidst acreage downfall, the increase in output will be due to increase in yield. This trend is evident in all major cotton producing zones. All India average yield is estimated to be 568 kilograms per hectare. Northern zone comprising of Punjab, Haryana and Rajasthan will see a significant yield increase with an average yield of about 668 kilograms per hectare. This will be about 210 kilograms increase per hectare compared to the last season.

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