India's cotton exports will hit a record 4.5 to 5 million bales in the year ended September, surging from 1 million the year before on the back of a rich harvest and carryover stocks, an industry official said on Saturday.
K.F. Jhunjhunwala, president of the East India Cotton Association, said crop output this year would slightly exceed official estimates at 24.5 million bales due to the use of better seeds and a larger area under cultivation.
The Cotton Advisory Board had estimated the crop at 24.4 million bales.
"In spite of massive exports, we will be left with huge stocks at the end of the season. Further, the crop prospects for next year are very bright," he told a cotton conference in Mumbai.
"This would afford a great opportunity for exports during the next season." India produced 24.3 million bales in the year ended September 2005.
"So far, the rainfall in cotton growing areas has been very, very satisfactory," he added.
The cotton crop, prone to attack by pests such as bollworm, has remained largely pest-free this year due to more widespread use of pest-resistant, genetically modified cotton. New hybrid seeds were also helping to increase yields.
Jhunjhunwala said Indian industry should aim to increase its exports to China, where it was a distant second to the US in market share. While the US has a 45 percent share of world cotton exports to China, India has only 12 percent.
Textile Minister Shankarsinh Vaghela urged cotton traders to pay farmers more than the minimum support prices set by the government to boost their earnings.
Thousands of cotton farmers have committed suicide in the past five years in just four western and southern states as they have struggled to repay debts.
Activists say the farmers have been driven into the clutches of private money lenders by a lack of water to irrigate fields, poor crops, and limited cheap credit.