Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Cotton prices leap following Indian export ban

Cotton prices have jumped after India, the world’s second largest producer of cotton, banned the fibre being exported from the country.

The ban was brought into place yesterday (Monday), with the Financial Times reporting that the move was aimed at making sure India’s domestic textile companies had a sufficient supply of cotton.

As India closed off exports global cotton prices rose 4.5% with the absence of shipments from the world’s second-largest producer likely to affect the market. US cotton futures for May rose by 4 cents to 93.23 (59.04p) cents a pound.

India previously banned exports in 2010, which led to record hikes in cotton prices, with farmers and mills defaulting on deliveries as prices climbed and crashed.

However, analysts said this ban may not have as severe an effect because cotton stocks are growing globally and consumers are also buying more synthetic fabric.

Dhiren N. Sheth, president of the Cotton Association of India, told the Financial Times: “It’s an extremely bad decision. It will harm India’s reputation in the international market [and] we will suffer long term. More importantly, this is bad for farmers as the price of cotton will go down locally. We urge the government to rethink this regrettable decision.”

Readers' comments (1)

  • Let's hope they don't rise as high as they did in 2010...

    Unsuitable or offensive? Report this comment

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.