“The report said that domestic cotton prices are expected to rise by
close to 80 percent in the cotton season 2010-11 (October to September).
” “..

It added that cap on Indian cotton exports are the main factors driving
up global cotton prices and rising imports of the textile raw material
from China are the main factors behind high cotton prices at the global
” “..

While rising imports from China has resulted in higher cotton prices in
India, the rise is not as sharp as the global prices because India
capped cotton exports for cotton session 2010-11 at 935 million kg-about
17 percent of the projected output-to ensure cotton supply for domestic
consumers. ” “..

The report said that Indian spinning firms will feel the effect of
rising cotton prices in the coming fiscal as they are likely to procure
around three-fourths of their cotton requirements for 2011-12 during CS
” “..

However, the report estimated, cotton yarn prices will rise by only around 20 percent during the coming fiscal.