India'S Cotton Output Is As High As 32 Million 500 Thousand Packs.

In the cotton season ended in September 2009, cotton production in India is expected to reach 32 million 500 thousand packs, a slight increase over the current cotton season, due to hopes for better yields in some states, a senior cotton industry official said on Friday.

In the cotton season ending September 2008, total cotton output in India is estimated to be 31 million 500 thousand bales.

Subhash Grover, chairman and chief executive of India cotton limited, said: "the output of 08-09 cotton season is estimated to reach 32 million 500 thousand packages, which is based on current agricultural climate conditions and cotton growing season."

In May, the expected cotton output was below the estimated 35 million cotton yield of the Federal Ministry of textiles.

The estimated reduction in cotton yield is due to a possible decrease in total cotton planting area and a lack of rain.

Cotton growing cotton season in Ande Laba, Orissa and central Pradesh may increase slightly, but cotton planting areas in other states may decline, Grover said.

In the current cotton season, the total cotton planting area in India is estimated to be 9 million 560 thousand hectares, of which Maharashtra contributed 3 million 190 thousand hectares.

Although cotton production is likely to rise, reaching a record high of 28000 rupees earlier this month, cotton prices will depend on global factors, such as supply and demand.

Grover expects that in the short term, after the government has abolished the import tax on cotton, the cotton season is expected to remain stable or even decline.

But starting from October, cotton prices can not be reduced. By then, new cotton will enter the market.

After the government abolished the import tax on cotton at the beginning of this month, India imported 500 thousand bales of cotton.

In the current cotton season, the total cotton imports in India reached 650 thousand packages by May 15th, according to the statistics of India cotton consultants.