Cotton output set for record as farmers shun oilseeds

Cotton production in India, the world's second-largest grower, is set to climb to an all-time high as delays in monsoon rains prompt farmers to switch from soybeans and peanuts, the nation's biggest cotton trader said. The harvest is poised to expand as much as 2.6 per cent to 40 million bales of 170 kg each in the year starting October 1, according to B K Mishra, chairman of the Cotton Corp of India. While the area is increasing from 11.7 million hectares (28.9 million acres), the harvest will be delayed by the worst start to the monsoon since 2009, he said. Cotton Corp. buys the crop at government-set minimum prices. Futures have dropped for 11 straight weeks in New York, capping the longest slump in 55 years, on concern that global inventories are climbing as demand slows from China, the largest user.