India’s cotton exports are expected to rise this year (October 2011 – September 2012) to eight million bales of 170 kg each, compared to last season’s export of seven billion bales, the Cotton Advisory Board (CAB) has said.

There are two major reasons for the likely rise in exports – the demand from China and cotton exports falling under the Open General Licence from the current season.

Industry insiders estimate that around 1.5 million bales of cotton have already been exported since October 1 and the exports are likely to increase as soon as prices decline owing to more arrival of crop in the market.

The estimate for cotton production during the current season has also been slightly revised upwards to 35.6 million bales from the earlier estimate of 35.5 million bales. The new estimate also factors in marginal crop damage in parts of Andhra Pradesh and Punjab.

Last season, India produced 32.5 million bales of cotton. The cotton production is estimated to be higher due to an increase in the area under cotton cultivation from 2.4 million hectares last year to 2.5 million hectares this year.

CAB also estimates the yield to be higher at 498.42 kg per hectare, as against the yield of 471.64 kg per hectare in 2010-11.

However, the consumption by small-scale industries and mills has been revised downwards to 21 million bales from last season’s consumption of 21.5 million bales, owing to their weak economic condition.