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Cotton industry in speculation worldwide
Feb '08
The year 2007-08 has turned out be quite fruitful for the cotton industry of India. Domestic prices remained steady as cotton output exceeded 300 lakh bales and exports made a mark of 60 lakh bales.

However, the textile industry on the whole remained speculative as well as disappointed with the soaring high internal prices of cotton despite large scale production. To the extent that recommendation to restrict or entirely ban cotton export has been made to the Government.

It is now left to the Government to look into price correction by means of releasing underground stocks of cotton into the market to support the cotton textile industry which is already suffering from the adverse impact of firming rupees.

Cotton stocks are projected to decline during 2007/08 as a result of the gap between world production and consumption. An expected significant fall in the stocks will in turn push prices higher in 2007/08.

For world cotton stock statistics click here

While, the US may face a decline in cotton area coverage, there could be slight increase for major producers like China and India.

For world cotton area statistics click here

International Cotton Advisory Committee

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