GLOBAL: Cotton Prices Surge on Fall in Global Production
Raw cotton prices are witnessing a surge owing to a fall in global production by up to 5-7% this year and greater demand. According to experts, the main reason for the fall in production is a shift by major cotton producers like the US to more lucrative crops like corn. Besides India and the US, China and South…
Egytex News Desk
Egytex
In international market, cotton is currently quoted at 80 cents per bale against 60-65 cents last year. The sudden demand for Indian raw cotton in global markets is thanks to the extensive use of Bt cotton seeds and improvement in quality of cotton. The surge in prices may see more farmers shifting over to cotton and this may increase the acreage by 5%, according to experts. As per the estimates in June 2007, which marks the beginning of the sowing season, around 25.40 lakh hectares was utilized to sow cotton. Looking at the higher prices farmers received this year, at least 5% increase in sowing area is anticipated in June 2008.
In the domestic market, for the season between November 2007 and June 2008, farmers were offered Rs 610 per 20 kg of raw cotton, which is Rs 70 more than the price last year. Experts say that only a rising rupee can play a dampener, as this will make Indian cotton expensive in the international market.
Source: The Economic Times.com
From the Egytex news archive, first published on 5 June 2008. Figures and names are as reported at the time.
