February 7, 2012

India's cotton arrivals drop to 18.2 million bales

In the current season, cotton arrivals from India's new crop fell 10.9%, the Cotton Corporation of India said on Monday (Feb 6).

Many farmers in a key producing state are holding back supplies on expectations the government will raise support prices.

Since the season began on October 1, cotton arrivals fell to 18.21 million bales of 170 kg each as of February 5, the state-run procurement agency said, down from 20.43 million bales a year earlier.

Farmers in the western state of Maharashtra, the country's second largest producer, are hoping the government will step in to support prices after they almost halved since last March while costs of seeds, fertilisers and fuel rose.