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Weekly Prices of Raw Cotton and Cotton Yarn in India

68th Plenary meeting Statement from ICAC (International Cotton Advisory Committee)

ICAC Cotton Country Report , USDA Estimates on Cotton World Markets & Trade

World Cotton Production, Consumption, Trade and Mills : An Overview in 2008/09

India retained the position as the second highest cotton producer in world.

• Despite adverse agro-climatic conditions during 2008-09, with advent of increased Bt cultivation, cotton production in the country had been at 290 lakh bales as against 315 lakh bales during the previous year. Thus, India has retained its position as the second highest cotton producing country in the world, after China.

Acreage under cotton during 2008-09 decreased by around 1% .

• The acreage under cotton during 2008-09 had decreased by 1% at 93.7 lakh hectares as against 94.4 lakh hectares during the previous year due to adverse agro-climatic conditions as compared to previous year, incidences of pests and bollworms, acute shortage of water due to non-release of canal water, delayed monsoon rains etc.,.

Cotton productivity declined

• Cotton productivity in the country, which was continuously rising over the years, has decreased to 526 kgs per hectare in 2008-09 from the level of 567 kgs per hectare in last year.

Significant increase in MSPs

During 2008-09, the Government of India had given substantial rise in the Minimum Support Prices (MSPs). The MSP for medium staple has been

increased by around 39% to Rs.2500 per quintal from the level of Rs.1800
per quintal, whereas the MSP for long staple had been increased by around 49% at Rs.3000/- per quintal from the level of Rs.2030 per quintal last year.

Cotton exports from the country

Despite Incentive Scheme of the Government of India in the form of duty credit scrip under Vishesh Krishi Gram Upaj Yojna (VKGUY) and abundant
availability of cotton in the country during 2008-09, cotton exports from the
country could not pick up due to disparity in domestic prices vis-à-vis
international cotton prices. As a result, as againstestimated cotton exports
of 50 lakh bales by CAB, as on 13th August 2009, around 33 lakh bales have
been registered for exports out of which around 28 lakh bales have been reported hipped.

Imports of cotton

Like previous year, cotton imports into the country were once again limited
to short supply in Extra Long staple cottons at around 7.00 lakh bales
inclusive of import of around 2 lakh bales of long staple varieties contracted
by mills.