India puts a cap on cotton export

By

Matthieu Guinebault

Published
Dec 13, 2010

The Indian government decided on December 1st to limit its cotton export to 720,000 tons. The announcement was received with joy by the local buyers, who had been demanding such a regulation for several weeks now due to cotton price rise.

According to the local press, this will be the most restrictive export limit set by the Indian government during the last three years. The new policy will be valid until mid January, leaving locals with 45 days to produce using national reserves.

Being the second largest producer and exporter of cotton, India will have produced 3.46 million tons this year only. The domestic demand is close to 2.56 million tons, according to the Cotton Yarn Advisory Board.