Cotton Exports Likely To Exceed Forecast

Mumbai: Cotton exports are set to rise to 60-65 lakh bales (one bale is 170 kg), against earlier estimates of 55 lakh bales. The forecast is based on ginners assessment, as those in Punjab, Haryana and Rajasthan are getting enquiries from overseas purchasers even before beginning production. Production will begin only in mid-September. The cotton farmers in the northern belt are also getting better prices for their produce. They are procuring cotton at Rs 2,200 per quintal against Rs 1,800 per quintal paid last year. The prices may go up another Rs 100-Rs 150 per quintal once the season starts. Cotton output in the north is pegged at 51.97 lakh bales, about 20,000 bales more than earlier estimates. The area under cultivation has also increased by seven per cent in Punjab and 25 per cent in Rajasthan.

In Gujarat, Maharashtra and Madhya Pradesh, area under cotton cultivation has increased by 5-8 per cent, NCDEX said. India's cotton production for 2007-08 has been estimated at 30 million bales, up from 28 million bales in the previous year. Maharashtra is hopping a staggering output of 388 lakh quintals, up from 325 lakh quintalslast year. China exports to US increased despite WTO restrictions. Indian textile companies have made huge capacity additions using technology-upgrading fund, but rising rupee has taken its toll.