India's cotton exports are expected to shrink for this year due to decreasing Chinese demand and lower production combined with higher state purchase prices, according to the Cotton Association of India.
Exports are likely to drop 59% to 3.5 million bales in 2008/09, with total output expected to fall 7.4% to 29.18 million bales.
China, which is experiencing a slowdown in its textile industry affected by the global economic crisis, is the largest destination for Indian cotton, accounting for over 70% exports.
