New Delhi. Cotton plantings in India, the world’s second-largest producer, is likely to shrink by 10% this year because of a drop in prices and weak export demand, a top trade body executive said Thursday.
“The import demand for Indian cotton is very poor. China has stopped buying, more or less,” Dhiren Sheth, president of the Cotton Association of India, told Dow Jones Newswires.
“The continuous change in (India’s export) policy has also hurt buying sentiment.”
Indian farmers are likely to be stuck with huge piles of cotton after achieving a record output of 34.7 million bales during the marketing year ending Sept. 30 because of the lack of import demand as well as thin buying by local textile mills.
The cotton acreage in 2011 was 12.2 million hectares.