India Cotton Merchants Welcome Government Expansion Of Cotton Export Quota

India's current cotton export quota is 5 million 500 thousand bales.

Two days ago, the Minister of Agriculture said that considering the interests of farmers, cotton export quotas will be increased.

Gujarat accounts for 80% of the country's cotton output, accounting for 90% of the country's cotton exports, and the farmers of the state will benefit from relaxing exports.

Cotton traders said that because the new cotton began to arrive, the current international market price is very high, therefore, it is a good time to expand export quota.

Cotton experts say new cotton will also enter the market in other countries in the world in February, and cotton prices are expected to decline.

If they do not increase their export quota, they say, there will be excess supply of cotton in the domestic market, and farmers may not be able to sell the good price.

Due to the reduction of cotton production due to floods in Pakistan and China, the world market is short of cotton and prices are soaring.

Manoj Vyas, a senior official of Gujarat cotton cooperation limited, said that the increase in export quotas would make farmers sell better.

Shafi Ahmed Shah, former managing director of India Cotton Corp, said that although domestic cotton prices rose from 24000 rupees / candy last year to 40000 rupees this year, farmers could sell better prices if they increased their export quota.

He said that if the export quota is increased, even the domestic consumers can give farmers attractive prices.

Otherwise, farmers will have to sell cotton at a low price, and the yield will not be too high.

India is likely to produce 34 million bales of cotton this year, with a domestic demand of only 22 million 500 thousand bales.