Pakistan is buying more cotton than expected from India after floods cut its own crop to the smallest in over a decade, opening an opportunity for the world's biggest producer to offload its bulging stockpiles.
India, the world's biggest cotton producer, is likely to export 6.8 million bales in the 2015/16 season, up 18% from a year ago as demand from Asia is expected to improve, a senior government official said on Tuesday.
India will be forced to make large-scale government cotton purchases from farmers for a second straight year, following a cut in imports by top buyer China that has depressed prices, industry officials said.
India has started selling cotton from government-controlled stocks as it tries to protect domestic textile mills from costly imports, but traders said sales have so far been limited because prices have been high.
India's cotton acreage may increase slightly on higher prices, less availability of water for irrigation in the northern states, which may see farmers shift back to cotton from rice cultivation, traders, farmers and o...