India’s cotton exports falter due to higher local prices: dealers

Indian traders have been struggling to sign export contracts for the new season crop as local prices are prevailing above global prices after New Delhi raised the minimum buying price to support farmers, an industry official said.

Lower exports by the world’s biggest cotton producer in 2019/20 season starting from Oct. 1 could support global prices and help rivals such as the United States and Brazil increase cargoes to key Asian buyers such as Vietnam, Bangladesh and Pakistan.

“Indian supplies are uncompetitive due to higher prices. Buyers are giving preference to Brazil and US,” Arun Sekhsaria, managing director of exporter D.D. Cotton told Reuters.