Cotton losing favour with Indian farmers as China buys less -Swansy Afonso

Mumbai: Farmers in India may plant fewer acres of cotton as slumping demand from China cuts exports to the lowest level in six years.

The area is set to drop as much as 10% in the 12 months starting 1 October from a record 12.97 million hectares a year earlier, said Dhiren Sheth, president of the cotton association of India. The harvest was a near-record 39 million bales of 170 kilograms this season, cotton advisory board data show.

A smaller harvest in India, the largest exporter after the US, would ease a global surplus that sent New York prices to a five-year low in January. China, the world’s biggest buyer, is importing less of the fibre used to make everything from jeans to tee shirts. That will contribute to a 41% drop in Indian shipments this year, the advisory board estimates.

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