Punjab is all set to witness the highest cotton production in last 16 years, with 27.5 lakh bales of cotton expected this year. The highest production last recorded was in 1989-90, when the state produced 26.5 lakh bales of cotton.

The record production is being attributed to the use of Bt or other hybrid varieties of cotton across 90 per cent fo the Punjab cotton belt. Besides higher yield, the improvised cotton varieties have lowered costs due to negligible use of pesticide.

While the area under cotton has decreased, the yield per hectare has increased considerably. In 1989-90, the area under cotton was 7.32 lakh hectare, with an average of 615 kg lint per hectare. This time, the area under cultivation is just 6.18 lakh hectare, with an average of 720 kg lint per hectare.

A similar pattern is discernible throughout Punjab, Haryana and Rajasthan, which are are expecting 50 lakh bales of cotton, with just 14.32 lakh hectares under the crop.

With 5,000 lakh bales of cotton reaching markets every day, more than 29,000 bales of cotton are already in the arena. The produce is recording prices higher than the MSP of Rs 1,845, hovering in the vicinity of Rs 2,000-2,150, and expected to shoot up to Rs 2,300 to Rs 2,400 by the end of this month.