CHANDIGARH, India (Reuters) - Cotton output in three northern states, which account for about 18 percent of national output, may rise this year as higher prices encourage a shift away from rice, officials and farmers said on Thursday 21 May.

A woman gathers cotton to make a quilt at a workshop in Chandigarh January 3, 2009 - Photo : Ajay Verma/Reuters

Farmers in Punjab, which on its own accounts for about 10 percent of Indian output, were expected to increase areas where cotton is grown by more than 1 percent, and the increase could be greater in Haryana and Rajasthan.

"Unlike last year when farmers opted for rice, anticipating higher returns and on fears on pest attack, they could switch back to cotton this time," said H.S. Bhatti, a Joint Director with the Punjab Agriculture Department.

Rakesh Rathi, the president of the North India Cotton Association, said farmers were opting for cotton over rice due to attractive returns and lesser risk of pest attack.

"Area under cotton may increase more in Rajasthan and Haryana than in Punjab this time," he said.

India, the world's second biggest producer of the cotton crop after China, was estimated to produce 23.3 million bales in 2008.

The latest estimates of Punjab's farm department have this year's cotton area growing by 4.7 percent to 552,000 from 527,000 hectares in 2008. Estimates from other states are not available.

As on May 20, cotton sowing was complete in almost 70 percent of the area, said officials at the farm department.

Punjab estimates 2009 output at 2.31 million bales (1 bale = 170 kg), 1.3 percent more than 2.28 million bales produced last year which was about 10 percent of national output.

According to government estimates, Haryana's share in India's cotton output was about 5 percent last year, while Rajasthan contributed around 3 percent last year.

Gurlal Singh, a farmer in Rajasthan, said the government had offered a very high minimum support price for cotton in 2008, which had ensured good returns to the growers.