India may place a ban on cotton export as prices double in less than a year

Cotton prices have reached newer highs in the Indian markets at around Rs 46,000 per candy. Cotton prices have doubled in the past year. In the global markets, there has been a 6 percent jump in prices.

On a month-on-month basis, cotton prices have seen a 12 percent gain. This year, there has been a 35 percent a jump and in the past 12 months, prices have appreciated by about 75 percent.

The global production of cotton for 2021-2022 was around 26.52 million bales, but the global consumption was nearly 27 million-plus bales. So, there has been a bit of a deficit.

For the Indian markets, there are statements coming in from the textile sector that there could be a need for a temporary ban on cotton exports, or some other restrictions.

India, in the recent few days, has waived off the 10 percent import duty until September, which is when new cotton crop starts coming into the market. There is a bit of a concern with new cotton crop harvest because of the heatwave and declining yields in cotton that has also added to the premiumisation in the prices.