Cotton production in India—the world’s second-largest grower and exporter—may be higher than previously predicted, an industry group has said.
In the year started October 1, output may total 30.55 million bales, 150,000 bales higher than the forecast in April, the Cotton Association of India said. Production was 29.75 million bales a year earlier, it said.
India halted cotton exports in April to cool local prices and boost supplies, only to permit shipments a month later by traders holding a license. Shippers are seeking to boost sales amid global prices that have rallied 36 per cent in the past year.
“The association notes with great disappointment that the government has brought raw cotton exports under a licensing regime,” the statement said. It “urges the government to move raw cotton exports back to the ‘free list’,” the group said.
Exports may more than double to 8.2 million bales in the 2009-2010 season, from four million bales a year earlier, the group said. The carry-over stock may decline to 5.5 million bales, from 6.875 million bales a year earlier, it said. Cotton futures for December delivery dropped as much as 0.3 per cent to 79.45 cents a pound on ICE Futures US and traded at 79.42 cents at 2.37 pm India time.