The Cotton Association of India has estimated higher production at 381 lakh bales in its third estimate for cotton season 2013-14.

The current estimation is higher by two per cent from 375 lakh bales forecast in September.

The Association expects better monsoon and good moisture to improve yield substantially this year. Output in the Central region consisting of Gujarat, Maharashtra and Madhya Pradesh is expected to increase significantly by 19 per cent to 207 lakh bales against 174 lakh bales achieved last season.

Gujarat may post 36 per cent jump in production at 113 lakh bales this season (83 lakh bales). However, cotton output in the northern and southern regions may fall marginally, said the CAI press release.