Prevent cotton prices from falling sharply Indian cotton farmers demand increased export quotas

As the December 15th deadline for cotton exports approached, farmers' associations in India pushed for an increase in the export quota, currently set at 5.5 million bales (each bale weighing 170 kilograms), to 9 million bales. This request was made during a meeting with Agriculture Minister Sharad Pawar in Delhi, who chaired the discussion. Farmers are concerned that without an increase in the export limit, domestic cotton prices could drop significantly due to oversupply in the local market. Veteran farmer leader Meghraj Patel emphasized that raising the export quota is essential to prevent a surge in domestic cotton production and stabilize prices. To control domestic cotton prices, the Indian government imposed a cap on cotton exports at 5.5 million bales, with a registration period from December 1st to December 15th. However, many industrialists argue that this timeframe is too short to export such a large volume, making it practically unfeasible. As a result of the export restrictions, cotton prices have already come under pressure. The price dropped from Rs.47,500 per bale in October to Rs.40,000 per bale. Industry experts warn that if export quotas remain unchanged, prices may fall further. The push for higher export limits comes as India has recorded a strong cotton harvest this season. Additionally, international cotton prices are currently higher than domestic ones, with global prices hovering around 125 cents per pound, or approximately Rs.48,000 per bale. According to industry estimates, India’s cotton output ranges between 33 to 40 million bales. However, the government projects the total production at no more than 32.5 million bales. With the growing demand in global markets and concerns over domestic price stability, the debate over cotton exports continues to intensify.