India's cotton exports will cross 100 lakh bales for the first time, marking a key milestone in the country's sevenyear journey from net importer to the world's second largest exporter with the cheapest cotton. At least one-third of the cotton crop may be exported this year given the pace at which deals are being signed. India is expected to harvest a record 345 lakh bales this season at a time when the textile industry is facing its most severe downturn. Buoyant exports have come to the rescue of lakhs of farmers in India's eight cotton-growing states that had otherwise been forced to make distress sales below the minimum support price due to slow purchases by local textile mills. India has the world's largest area under cotton, ranging between 10 million and 11 million hectares. Keen to garner revenue from this heavy outflow, mainly to China, government may consider collecting Rs10,000 per tonne as export duty from traders to fill its own coffers, said a senior official, who declined to be named.
Source: Economic Times
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