Global Demand To Increase Domestic Cotton Prices

The governmental marketing organisation for the local cotton industry, Cotton Corporation of India Ltd. (CCI) feels that the global demand for cotton is all set to increase the prices of cotton by 15-20 percent this year.

The corporation clarified that cotton imports by countries like China, Pakistan and Bangladesh had increased by 20-25 percent in the first two months (November-December) of the season and is further expected to rise by another 30-40 per cent this year due to a decline in production in these countries.

CCI estimates suggest that production of cotton in India will be around 30 million bales this season, compared with 28 million bales in 2005-06. Of this, around 6.5 million bales are expected to be exported to China, Bangladesh, Pakistan, Indonesia and other countries. Traders are exporting best cotton to earn a better margin. As a result, there is a scarcity of quality cotton domestically, which has resulted in higher prices