USDA arm pegs India 2017-18 cotton crop up 12% at 38.6 mln bales.

USDA has projected India’s cotton production in 2017-18 to increase to 38.6 mln bales (1 bale = 170 kg), compared with 34.6 mln bales last year due to higher acreage. The area under cotton across the country is estimated to have increased to 12.2 mln ha, compared with 10.8 mln ha last year. Globally, Aug-Jul is considered as the cotton crop year, while in India it runs through Oct-Sep. Planting in northern India is complete while planting in central and southern states is progressing with additional acreage expected due to delayed monsoon rains. However, the agency has projected cotton yields to decline in the current season due to erratic rains, unfavourable temperatures, and reports of pest attacks. India’s 2017-18 cotton yield has been forecast to fall to 536 kg per ha, compared with 542 kg in 2016-17. Rise in production is likely to lower the country’s imports to 1.9 mln bales from 3.5 mln bales last year.