Global prices of the cotton commodity shot up after India, the second largest exporter of cotton, imposed ban on the commodity.
According to the officials, India imposed ban to ensure sufficient amount for the domestic industries as the exports surged to about 9.5 million bales (170 kilograms each) more than the surplus of 8.4 million bales estimated by the government.
While the government has issued registration certificates for another 2 million bales.
According to United States Department of Agriculture (USDA), India accounts for 17% of global exports in 2011-2012. China is the largest consumer of Indian cotton.
India is expected to produce around 34 million bales of cotton for 2011-12. and is expected to export around 70 million bales.
In Inter-Continental Exchange (ICE), cotton for march delivery gained 0.22 cents to 89.78cents per lb.
While, in India's National Commodity and Derivative Exchange (NCDEX), cotton for March delivery traded up 0.06% to Rs 810 per kg on 9th March at 16:20 IST.
According to the officials, India imposed ban to ensure sufficient amount for the domestic industries as the exports surged to about 9.5 million bales (170 kilograms each) more than the surplus of 8.4 million bales estimated by the government.
While the government has issued registration certificates for another 2 million bales.
According to United States Department of Agriculture (USDA), India accounts for 17% of global exports in 2011-2012. China is the largest consumer of Indian cotton.
India is expected to produce around 34 million bales of cotton for 2011-12. and is expected to export around 70 million bales.
In Inter-Continental Exchange (ICE), cotton for march delivery gained 0.22 cents to 89.78cents per lb.
While, in India's National Commodity and Derivative Exchange (NCDEX), cotton for March delivery traded up 0.06% to Rs 810 per kg on 9th March at 16:20 IST.
Cotton price India which increased to a height of Rs 63,000 a candy(1 candy = 356 kg) had dropped drastically in the last eight months. India may witness a decline in the sowing of Cotton in 2012-13 due to the lower global price for the commodity in the current year. The country's area under Cotton increased to 118 lakh hectares from around 111 lakh hectares last season.
Higher cotton price of the commodity last year had made the growers to increase the acreage under production. A similar reaction could Lead to drop in crop acreage according to Mr Terry P. Townsend, Executive Director of International Cotton advisory committee.
Cotton production in India has peaked and we expect the area to decline. But consumption will go up and the gap between production and consumption will narrow,” said Townsend, reported Business Standard.
Globally cotton production of the commodity has remained high above the consumption level. The world production for 2011-12 is estimated at 27 million tons (mt) while the consumption is projected at 25 million tons. India's shares stands at 6 mt and in consumption 4.5 mt.
Cotton for December 2011 contract is currently trading at Rs 17480 on tuesday, 15th November at 12:50 IST, on Multi Commodity Exchange (MCX).
Higher cotton price of the commodity last year had made the growers to increase the acreage under production. A similar reaction could Lead to drop in crop acreage according to Mr Terry P. Townsend, Executive Director of International Cotton advisory committee.
Cotton production in India has peaked and we expect the area to decline. But consumption will go up and the gap between production and consumption will narrow,” said Townsend, reported Business Standard.
Globally cotton production of the commodity has remained high above the consumption level. The world production for 2011-12 is estimated at 27 million tons (mt) while the consumption is projected at 25 million tons. India's shares stands at 6 mt and in consumption 4.5 mt.
Cotton for December 2011 contract is currently trading at Rs 17480 on tuesday, 15th November at 12:50 IST, on Multi Commodity Exchange (MCX).
