According to experts, a rise in production in India will weigh on prices, which hit one-year high in New York this week.
Farmers and market analysts said India's cotton output may go up to 29 million bales (170 kg each) following a big leap in use of GM seeds by farmers. Data available with agriculture department officials say that planting of modified cotton has gone up to cover two-thirds of the nation's 9 million hectare growing area.
Farmers in Punjab, Haryana and Rajasthan planted modified cotton seeds, including Monsanto's Bollgard II variety, on at least 10 per cent more land. Bollgard seed contains a protein from a soil microbe called Bacillus thuringiensis, or Bt, that protects the crop from bollworms and requires less pesticides.
India's average per-hectare yield has risen by two-thirds to 501 kg since farmers started planting GM seeds in 2002.
Indian mills have exported 4.7 million bales so far this year because of higher global prices. India may this year surpass Uzbekistan as the world's second-biggest exporter of the fiber.
However, experts also sounded a warning saying that a lot will depend on rains in the cotton-growing states.
According to Met office, monsoon may cross into Maharashtra and Gujarat, the biggest cotton-growing states, later this week after the delay of a few days.
