India 2010-11 Cotton Planting Area May Be Set At Record Price.

India industry management said on Wednesday that

India's cotton prices have risen sharply, and China has purchased large quantities of cotton from the second largest cotton producing countries in the world to meet the demand.

Cotton prices in India hit a new high of 33000 rupees / 356 kilograms on Tuesday, up 47% from the start of the lunar calendar in October at a price of 22400 rupees.

Government data show that as of August 12th, the planting area has exceeded 10 million 500 thousand hectares in 2009-10 years this year.

Industry officials expect that in the 2010-11 year, India's cotton output will be about 32 million bags, 170 kilos per pack, higher than this year's output of 29 million 500 thousand bags.

On Tuesday, India announced that, in the next market year beginning in October 1st, India will cancel the current license management and the custody of each contract.

In order to balance the interests of farmers and textile factories, the India government adopted a permit management system in May after a month of banning cotton exports.

A senior expert said that easing export control will further support domestic cotton prices.

In the 2009-10 year, India exported about 8 million 300 thousand bags of cotton because of the revival of global demand.

In the last market year ended in September 30th, cotton exports in India decreased by 60% from a year ago to 3 million 500 thousand packs due to the global economic downturn.