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Indian cotton exports projected to zoom
27
Aug '10
As the cotton fields in China and Pakistan have got washed away by floods, cotton exporters in India are expecting bountiful orders in the near future.

Next to US and China, India with about 30 million bales is the third largest manufacturer of cotton the world over, while Pakistan occupies the fourth position. But, massive floods in China and Pakistan are likely to trigger supply shortage in the global markets.

There has been a historic rise in the total acreage under cotton cultivation in Gujarat, from which around 70 percent of the entire cotton exports from India is sourced. There has also been a proportionate rise in the yield.

Market basics say that, as production increases, prices decline. But this year, despite the fact that, cotton output in Gujarat is seen to exceed a historic 10 million bales mark, prices are likely to keep on the higher side on account of global supply-demand forces.

The Indian government too has relaxed the ban on cotton exports, from which, the farmers and traders are likely to benefit.

Fibre2fashion News Desk - India


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