India's cotton output likely to reach 340 lakh bales in 2011-12 season

The Cotton Association of India (CAI) expects that in 2011-12 season, India's cotton output will be at least 340 lakh bales (34 million bales), but its consumption will probably be below 250 lakh bales (25 million bales), Indian media reports.

CAI President, Dhiren N Sheth, was quoted as stating that favorable seasonal conditions for cotton in the previous season (2010-11) encouraged Indian farmers to boost the acreage for cotton cultivation, and with hindsight of price hikes in the 2009-2010 season, Indian famers used extra area for cotton cultivation.

According to CAI President, lately the rapid expansion of genetically modified cotton area has led to an increase in India's domestic production, and the uptrend continued in the 2010-11 season.

Nevertheless, he remarked that as the worldwide economic growth is projected to decelerate in 2011 and 2012, the international market's demand for textiles and cotton fiber will be affected.