Cotton industry troubled as prices hit five-year low
27/11/2014
The price of cotton hit its lowest point since 2009 this week, severely affecting famers, traders and ginners, as supply outstrips demand.
China’s stockpiling strategy has meant knock on effect and the government said it will reduce cotton imports this year by half.
In India, production is expected to reach a record level this year but exports have fallen dramatically.
"It is a difficult period for the textile industry. Cotton prices won't recover without aggressive buying from China and that seems unlikely," Pradeep Jain, an Indian ginning mill owner, told Reuters.
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