The seed industry is expecting a rise in cottonseed consumption in Maharashtra and Gujarat in the range of 3-5 per cent in the ensuing kharif season. Both States witnessed a significant drop in cotton area last year.

The industry as a whole too is likely to register a similar growth rate of 3-5 per cent this year, with an expected sales of 4-4.2 crore packets of cottonseed.

While Gujarat witnessed a drop of 10 per cent (45 lakh packets sold) in cottonseed consumption, Maharashtra registered a reduction of 3-5 per cent (1.5 crore packets sold). Each packet contains 450gm of seed.

“Cotton lost out to soya last year. But we are expecting them to come back as it turns out to be less lucrative this year,” P Sathish Kumar, former President of the Andhra Pradesh Seedsmen Association, told Business Line .

Like last year, the seed industry is saddled with an inventory of four crore packets. But the industry feels that there are no stocks of premium brands. Though myriad brands are available in the market, only a handful of them go well with the farmers. A large chunk of the left-over stock consists of non-premium brands.

Andhra Pradesh, which is a key market for the industry, consumes one-fourth of the four crore packets the country buys every year. The industry expects this trend to continue this year as well. After a bleak estimate of area, the State went on to reach the record levels of 22 lakh hectares against the average area of 15 lakh ha. The seed industry is not losing sleep over weathermen’s forecast of a not-so-favourable rainfall.

“Unlike other crops such as maize, cotton can withstand dry spells, thanks to its deep root system. It can withstand even if rains are delayed for a while,” Satish Kumar said.

Meanwhile, the Andhra Pradesh Government has decided to maintain a status quo with regard to the price of cottonseed. It held a couple of rounds of discussions with the stakeholders (prior to the President’s rule).

Despite a demand from the industry for a hike, the Government chose not to increase the price, keeping in view the upcoming general elections.

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