The United States Department of Agriculture says Australia's cotton output will almost increase by two times next year as farmers expand their planting area, while rainfall helps cotton grow.

The US Department of agriculture's Export Bureau reported that cotton production could soar to 1 million 500 thousand bales in the year to September 2009, higher than the annual output of 525000 bags by September this year.

The picking area will be increased by more than two times to 190000 hectares.

Australia's cotton output has plummeted this year because of a severe drought since 2002.

The Australian Bureau of agricultural resources economics reported in February that this year's harvest is the lowest harvest in 25 years.

Even if the output reaches 1 million 500 thousand packs, Australian cotton production is also below the 10 year average of 2 million 300 thousand packages.

Cotton prices rose 43% in the United States last year, but Australian cotton farmers did not benefit because of the appreciation of the Australian currency.

Last year, Australian dollar appreciated 15% against the US dollar.