India’s cotton yarn exports have decreased in January-August 2014. Less exports to the neighbouring country China is touted to be the biggest reason for the plunge. Over the years, China has been the leading importer of cotton, but the country has now decided to reduce its cotton import which is significantly affecting India. Moreover, it has also been reported that India would harvest 40 million cotton bales this year which is 8 per cent more than of what produced last year. This may further increase trouble for India as the surplus production of cotton at this moment may hurt global and local prices badly.
