MUMBAI, Dec 6 (Reuters) – India’s annual cotton output could drop 12 percent to the lowest in nine years as limited rainfall in the top two producing states has slashed crop yields, potentially cutting exports from the world’s top producer, industry officials said.
Lower cotton shipments from India will allow rivals such as the United States, Brazil and Australia to increase cargoes to key Asian buyers such as China and Pakistan. It may also support global prices that have fallen 16 percent since hitting a four-year peak in June.
India could produce 32.5 million bales in the 2018/19 marketing year that began on Oct. 1 – the lowest since 2009/10 – as farmers in the western states of Gujarat and Maharashtra are reporting poor yields, said Chirag Patel, chief executive at major exporter Jaydeep Cotton Fibres Pvt Ltd.
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