Oct. 27 (Bloomberg) -- Cotton exports from India, the second-biggest grower, may be more than forecast this year after high domestic prices encouraged farmers to plant record acres, the Cotton Association of India said.

Exports in the year to September may reach 7 million bales, each weighing 170 kilograms (375 pounds), from 6.5 million bales estimated last month, the association said today in an e-mailed statement. Shipments totaled 3.2 million bales last year.

Cotton in New York has advanced 37 percent this year amid optimism a stabilizing world economy will increase consumption. Prices have been supported by a forecast decline in production in the U.S., the world’s biggest exporter.

“Even with the higher exports, carry-over stocks at the end of the season would be quite comfortable, resulting in one of the highest stocks-to-use ratio in recent times,” Dhiren N. Sheth, president of the association said, in the statement.

Cotton futures for December delivery fell 0.6 percent to 66.28 cents a pound at 12:25 p.m. in after-hours trading on ICE Futures U.S. in New York.

Production may total 31.3 million bales, compared with 31.2 million bales forecast last month, the group said. Planted area reached a record 10 million hectares (24.7 million acres), the association added, without giving a comparative figure. Domestic consumption may total 25 million bales, it said.

The forecast compares with the 30.5 million bales forecast on Aug. 31 by the Textile Ministry’s Cotton Advisory Board.

The U.S. Department of Agriculture on Oct. 9 reduced its annual-production estimate by 3.3 percent to 13 million bales from a month earlier because of heavy rains. A bale weighs 480 pounds in the U.S.

To contact the reporter on this story: Thomas Kutty Abraham in Mumbai at tabraham4@bloomberg.net

Last Updated: October 27, 2009 03:04 EDT