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Related Keywords: drought. push up fabric and clothing prices, halted cotton exports, India, local prices rallied, Pakistan and Vietnam, pressure on margins of garment makers. forced key importers like Bangladesh, tight supplies, turn to other suppliers, world’s biggest producer of cotton

India, the world’s biggest producer of cotton has nearly halted cotton exports as local prices have rallied due to tight supplies because of drought. The price rise could subsequently push up fabric and clothing prices and put pressure on the margins of garment makers. This has also forced key importers like Bangladesh, Pakistan and Vietnam to turn to other suppliers.

The freeze in Indian export will prompt Brazil, Australia and United States to raise shipments and has pushed global prices to near their highest since August.

Related Keywords: CCI, drop in production, higher demand from Bangladesh, Higher exports will cap global prices, Indian cotton, MSP, offset poor demand from China, Pakistan and Vietnam, pilot project for Maharashtra farmers, raise domestic prices, Textile Commissioner Kavita Gupta

Textile Commissioner Kavita Gupta after a meeting of the state-run Cotton Advisory Board on Tuesday said that they are expecting higher demand from Bangladesh, Pakistan and Vietnam. This will offset poor demand from China.

India, the world's biggest cotton producer, is likely to export 6.8 million bales in the 2015/16 season, up 18 percent from a year ago as demand from Asia is expected to improve, a senior government official said.

Higher exports will cap global prices, but raise domestic prices and help bring down government purchases at the support price.

Related Keywords: biggest producer of cotton, CCI, China to curb purchases, declining demand, India, Pakistan and Vietnam, raise sales to Bangladesh, second biggest seller, this crop year, to a five year low, to suffer steepest loss, witness fall in cotton exports, world stockpiles

India, the world’s biggest producer and second biggest seller, are likely to witness fall in cotton exports by 41 percent to a five-year low of 7 million bales this crop year ending September as China, the top buyer to curb purchases, according to government official.

Lower exports from India could support benchmark New York price that fell to a one-week low on Monday.