The higher Bt cotton acreage and output will partially compensate the overall decline in cotton acreage and output in North India in 2008-09 (October-September), O P Agarwal, executive director, Cotton Association of India, said today. Lack of irrigation in Ganganagar cotton belt in Rajasthan led to a 35 per cent fall in cotton acreage from 368,000 hectares in 2007-08. "A significant fall has occurred in Punjab also, where early rains adversely affected germination and re-sowing could not be done. Only a marginal fall of about 5 per cent is expected in Haryana. A clear picture may emerge by mid-July," Agarwal said. "The total acreage reduction in the north zone, comprising Punjab, Rajasthan, and Haryana, for 2008-09 is estimated 10-12 per cent down from 1.49 million hectares in 2007-08, indicate preliminary reports from traders and farmers," he said. The expected drop in 2008-09 output in north zone, however, will be compensated through increase in area under Bt cotton from 55-60 per cent in 2007-08 to 70-75 per cent, he added. "In 2007-08, north zone crop was reduced to 4.7 million bales from 4.8 million bales in 2006-07, owing to attack of mealy bugs and leaf-curl virus. It is to be seen how much of such damage is averted this year by expanding acreage." Agarwal said in central zone, comprising Gujarat, Maharashtra and Madhya Pradesh, sowing is yet to gain full momentum as rains have been inadequate, particularly in Maharashtra. Higher output Total Indian cotton output in 2008-09 is expected to rise to 32.79 million bales from estimated 31.5 million bales in 2007-08, said Shirish Shah, director, CAI. "The output may enhance on a higher Bt cotton acreage up to 80 per cent in 2008-09 from 60-65 per cent of total acreage in 2007-08. This is predicted despite reports of a dent in total acreage in 2008-09 to 9.27 million hectares from 9.55 million hectares in 2006-07," Shah said. Cotton Supply May Drop on Lower US, China Output Global cotton production next season may fall 2.8 per cent because of declines in the US, the world's biggest exporter, and China, the largest grower, the International Cotton Advisory Committee said. Cotton supplies will drop to 25.5 million tonnes in the year ending July 31,2009, compared with 26.2 million tonnes in the current marketing year, the Washington-based committee said today in an e-mailed report"