Indian exports of cotton might not fill the government's quota due to record prices and the fact that some exporters are not supplied, according to an international exporter cited by Bloomberg.
Exports of the soft fiber from India, the second-largest grower following China, might be 62 percent less than the 5.24 million bales allowed to be shipped by mid December, according to Unupom Kausik, cotton business head at Olam Agro India, an arm of Olam International.
Lower shipments "will definitely impact global as well as domestic prices," Kausik told Bloomberg in an interview.
As the world's second-largest cotton grower, India also is the world's second-largest exporter. The country might put a clamp on global inventories due to an increasingly demanding China. Thus far this year, cotton prices have surged 51 percent in New York. On November 10, the soft fiber topped out at $1.5195 cents a pound, its record price.
"The confirmed sales which are in place between buyers and sellers, and are profitable, will be performed upon," Kausik told Bloomberg. "Unprofitable sales have already been defaulted upon."
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