India set to be world's largest cotton producer by 2022

NEW DELHI: India is projected to replace China as the world's largest cotton producer by 2022 on account of higher growth in output over the next decade, according to OECD-FAO report.

"China's cotton production is expected to decline 17 per cent while production in India is projected to increase 25 per cent, positioning it as the world's largest producer," the Organisation for Economic Co-operation and Development ( OECD) and Food and Agriculture Organization (FAO) said in a report.

"India will trade places with China as the top cotton producer," it added.

India's cotton production is projected to rise by 25 per cent mainly due to increasing yields, albeit with slower yield growth than in the previous decade, OECD-FAO said.

As per the Agriculture Ministry data, cotton production stood at 338 lakh bales (of 170kg each) in 2012-13 crop year (July-June).

The report 'OECD-FAO Agricultural Outlook 2013-2022' said that the consumption of cotton in India is expected to grow far more than in any other country, and the country's textile industry will be poised to overtake that of China in the coming decade.

China's cotton production is projected to decrease as a result of a decline in area. By 2022, the harvested area for cotton is projected to be 20 per cent lower than the base period although yield will continue to expand.

"World cotton production is expected to grow by 1.6 per cent per annum, marginally more slowly than consumption at 1.7 per cent per annum to reach 27.2 Mt in 2022, as the unusually high global stocks that accumulated during 2011-13 are gradually reduced," the report said.

By 2022, world cotton prices are expected to be lower in nominal terms than at the start of the projection period.