India will allow cotton exports up to 5.5 million bales (1 Indian bale = 170 kg) in 2010/11 starting October 1, Trade Secretary Rahul Khullar said on Saturday, a move that is likely to cool global cotton prices. India clamped down on cotton exports in April, but relaxed export controls subsequently as good monsoon rains have raised prospects of higher local output and stable prices.
India is likely to produce 32.5 million bales of the fibre in 2010/11, up from 29.5 million bales in 2009/10, Khullar said. Global cotton prices have risen as the stocks-to-use ratio has dipped to the lowest since 1989/90, with the International Cotton Advisory Committee forecasting a 15 percent jump in prices in 2010/11 as demand recovers and world stocks remain tight.
India is the second-biggest producer, consumer and exporter of cotton, and about 60 percent of the current season shipments have gone to China, the biggest consumer. New Delhi will again review the cotton export scenario on November 15, Khullar said.
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