August 2, 2012

India's cotton imports may rise three-fold on low supplies

India's cotton imports are expected to treble in the year ending September 30, 2012 due to shortfalls in domestic cotton supplies.

India is the second biggest cotton producer in the world and has already imported 500,000 bales of cotton and signed contracts for a further one million bales at US$0.75-0.80 per pound.

The majority of imports are provided by African countries, Australia and Brazil.

Throughout the first nine months of the cotton year, India had been exporting cotton mainly to China; however African and Brazilian sellers are now offering cotton at lower prices, hampering Indian exports.

Some farmers have decided to switch from cotton to soy production, following a change in production prices.