Cotton production is estimated to increase by 5 per cent to 37.6 million bales for the marketing year 2013-14, according to industry data.

The production of the commodity in 2012-13 marketing year (October-September) stood at 35.7 mn bales of 170 kgs each, as per Cotton Association of India (CAI) estimate.

The government has pegged the production of cotton at 35.3 million bales for 2013-14 and raised minimum support price (MSP) for cotton to Rs 3,700 per quintal from Rs 3,600 per quintal in 2012-13.

"Production will be higher in the present season despite lower acreage, as there was good monsoon this year and acreage in Gujarat has gone up substantially," CAI President Dhiren Sheth said

Acreage of cotton in the present season (2013-14) has come down slightly to about 11.8 million hectares as compared to 12 million hectares in the last season.

"The production of cotton crop for 2013-14 season beginning October 1, 2013 is estimated at 37.6 million bales," CAI said in a statement.

Arrivals till December in the present season were up 16.8 per cent to over 11.97 million bales compared to 10.25 million bales in the same period last season.

"About one-third of the crop has arrived and approximately two-third is yet to arrive during the remainder of the season," Sheth added.

According to CAI's estimate, cotton production in Gujarat is set to jump to 11.8 million bales from 8.65 million bales during the said period.

The output is expected to go up in Maharashtra also, while in Andhra Pradesh and Punjab, it is estimated to come down slightly.