India Foreign Trade Council, at its Web site a notice, the export of raw cotton will be 5% of the incentives, the implementation period from April 1, 2008 to June 30, 2009. The plan aimed at promoting India’s cotton exports, mainly cotton farms. Experts ridicule the Government’s decision is equivalent to other competitive state procurement of cotton subsidies, such as China, Pakistan and Bangladesh.

Cotton in the current year, India’s cotton production is expected to reduce the 9.94 percent, to 29 million packets (one packet is equivalent to 170 kilograms), and the Government in October last year, is expected to yield 32.2 million in the package. Government made this decision has greatly increased cotton prices. February 18 morning in the cotton market Gujarate transactions, cotton prices in 2500-3000 rupees / candy (1 candy = 356 kilograms.