India, China policies hit global cotton trade

Policies adopted by India and China, the world’s two biggest cotton
producers, have affected global cotton trade and prices this year,
according to the International Cotton Advisory Committee (ICAC).
“This season, global cotton trade and prices are affected to a large
extent by government policies in China and to a lesser extent by
policies in India,” the US-based ICAC said in a statement.
China imported in a big way to build reserve, while India has stopped
further cotton exports.
“China accumulated over three million tonnes of domestic cotton and at
least one million tonnes of foreign cotton in its national reserve
during the first eight months of 2011-12,” the statement added.