The government aims to increase cotton production from current 13 million bales to 22 million bales and exports from 1 million bales to 3 million bales in its proposed five-year cotton policy, commencing 2013.

A senior government official on Wednesday said the government would announce encouraging incentives and better regulation of the market to help farmers increase production of cotton.

Speaking on the topic, the official said, "Cotton exports will go up to 3 million bales by 2017 on the back of better regulation of the market and encouraging incentives, which will be unveiled in the new cotton policy."

Domestic demand for cotton will rise to an estimated of 19 million bales by the year 2017, from the current demand of 14 million bales.

This season (October last year to September this year), according to the reconstituted Cotton Advisory Board, which held its meeting in Mumbai on Wednesday, the country will produce 330 lakh bales of cotton.

Incentives will be announced to increase area sown with cotton crop. The government aims to bring 4.2 million hectares of land under cotton, up 1 million hectares from the current 3.2 million hectares. The government will also make efforts to improve yarn recovery rate from current 85 per cent to 90 per cent.

Under the five-year cotton policy, the government will also emphasize research & development (R&D), capacity-building as well as infrastructure development.