Business OpportunitiesCotton yield hits 4-yr low, dips 5.45%
The country’s cotton yield has hit a four-year low in the current season, as the delayed monsoon disrupted sowing earlier. This is for the consecutive year that the country’s cotton output is estimated to slip below 30 million bales (1 bale = 170 kg). The cotton season starts from October and ends in September.
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Despite a rise in Bt cotton usage, which touched 80 per cent of the overall area under cotton cultivation, the yield has come down by 5.45 per cent to 495.55 kg a hectare for the current cotton year from 524.13 kg last year. It was back in 2005-06 that the country recorded a crop yield below 500 kg.
The Cotton Advisory Board, under the Ministry of Textiles, today revised its output estimate to 29.5 million bales, just 1.72 per cent higher than the previous year’s crop of 29 million bales. The revision comes within 3 months of the board’s last estimates of 30.5 million bales.
“This is mainly due to crop damage in states like Karnataka, Andhra and Maharashtra,” said Textile Commissioner AB Joshi. However, he added that acreage was up 7.7 per cent to 10.12 lakh hectares, which last year stood at 9.4 million hectares.
The northern region comprising Punjab, Haryana and Rajasthan witnessed the largest decline in yield at 441.41 kg per hectare, down 14.45 per cent. The central zone which includes the major cotton producing states of Gujarat and Maharashtra saw an overall decline of 4.31 per cent at 451.79 kg.
In fact, barring Karnataka and Tamil Nadu, the yield across all the states has declined. The most hit states are Haryana and Punjab with a decline of 18.88 per cent and 10.11 per cent, respectively.
Lower output than the earlier estimates is likely to put pressure on cotton prices, which are already 12-15 per cent higher than last year.
With an output of 29.5 million bales and import of 7 lakh bales, the overall supply, according to CAB, will stand at 37.35 million bales for the year, which include the a carry forward stock of 7.15 million bales.
The total domestic demand is estimated at 25 million bales and export at 5.5 million bales, thereby leaving a closing stock of 6.85 million bales for the next season.