31 August 1999
Indian cotton crop to fall
INDIAS cotton crop is expected to fall this year because of a decrease in the land under cultivation and a dry spell in a key producing region.
Indian cotton officials say the next crop will be between 15.5 million and 16m bales, compared with 16.25m bales in the previous season.
The shortfall is unlikely to affect prices because there is a 4.25m bale overhang on the market.
Indias production problems after a high-powered committee urged the government to remove all restrictions on raw cotton and cotton goods exports.
The committee wants the abolition of the monopoly procurement of the cotton crop in the western Indian state of Maharashtra.
Indias domestic market will face the full force of competition in 2004, when the World Trade Organisation agreement on textiles and clothing ends.
- Financial Times 31/08/99 page 24