India Caps Cotton Export Despite Record Output.

MUMBAI: Cotton output in India, the world’s second biggest producer and exporter of the fibre, is seen at a record 32.9 million bales in 2010/11 on higher acreage and favourable weather.

But despite the record output, the south Asian country has imposed a cap on exports at 5.5 million bales, even as demand from overseas has increased after bad weather hit crops in China and Pakistan, both leading consumers.

India’s cotton marketing year runs from October to September. In 2010/11 farmers had sown cotton crop on a record 11 million hectares.

According to the latest estimate, India’s total cotton supply remains 37.5 million bales in 2010/11 up from 37.35 million bales in the previous year. Despite 300,000 bales lower demand than previous year at 33 million bales, India has allowed export of only 5.5 bales and traders are yet to honour commitments of around one million bales made with Pakistan traders.

Source : thenews.com.pk