CAB fears decline in cotton production, revises estimates

CAB fears decline in cotton production, revises estimatesThe Cotton Advisory Board (CAB) revised the production and demand estimate for the crop season 2008-09 in a meeting held in Mumbai on Friday, confirming the impact of global slowdown on cotton economy and impact of erratic rain and pest problem on the crop.

Textile Commissioner, Maharashtra, Mr A. B. Joshi said that cotton production in the state can decline due to unfavorable climatic conditions and red leaf syndrome. Area under cotton cultivation declined about 34 per cent with Punjab recoded decline of 11 per cent, Haryana 5.80 per cent and Rajasthan 34 per cent under the cotton cultivation. However, area under BT cotton witnessed increase in all nine cotton producing States that accounts for 73 per cent of total area covered under the crop.

Earlier, the board estimated 322 lakh bales of cotton production for the crop season which is now lowered to 290 lakh bales, estimating 9 per cent drop as compared to its earlier projections.

Export targets have also been lowered to 50 lakh bales as compared to earlier projections of 75 lakh bales. Meanwhile, Chairman of the Southern India Mills' Association, K. V. Srinivasan asked government to refrain from providing incentives to cotton export in the wake of global slowdown.