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The Indian government plans to record acquisition of cotton in this market year up to September 2013 to prevent panic selling by farmers. As cotton picking progress continues, and domestic and export demand are weak, cotton prices are expected to plummet from November. . India’s state-owned Indian Cotton Corporation (CCI) has already established an initial roadmap for the acquisition of 9 million bales of cotton from farmers at a benchmark price determined by the country at an overall cost of Rs 16,470 crore.
Global cotton prices are much lower than India, because China, the largest consumer country, has reduced imports. India’s exports cannot be left alone. In addition, as of the end of November, domestic textile mills have already accumulated 3.8 million bales of cotton, and it is impossible to increase stocks now. Therefore, starting from November, cotton prices are expected to be lower than the minimum support price.
The Indian Cotton Advisory Committee predicts that India's cotton production in 2012-13 is expected to reach 33.4 million bales, and textile mill consumption is expected to reach 25 million bales.