Mumbai (PTI): Sowing of cotton may fall in 2009-10 owing to export demand for cotton drying up, says a report.
On the domestic front, the recession in developed countries, particularly the USA and EU has hit exports of textiles and readymade garments, which would adversely affect demand for cotton, the Centre for Monitoring of Indian Economy (CMIE) said in its monthly review here.
Since June 2008, export demand, largely from China has dried up. At the same time, international cotton prices have also plummeted.
As there is no longer any incentive to grow more cotton, CMIE expects production of cotton to decline to 24.6-million bales on lower area sown and no further improvement in yield in 2009-10.
Cotton arrivals in the various mandis across the country were 25.3-million tonnes by March 28. This shows a decline of 8.3 per cent when compared with the arrivals of 27.6-million tonnes by the same period of 2008.
A fall in arrivals despite an increase in minimum support price (MSP) by Rs 700 per qunital indicates lower production.
Source : The Hindu