The purchase of cotton by Indian government is expected to drop down to 89 per cent in the 2015-16 marketing year owing to high prices after rise in import of the crop by Pakistan.

The Cotton Corporation of India (CCI) supports cotton farmers in India by purchasing the crop at the minimum support price (MSP) of Rs 4,100 per 100 kg, but the high demand from Pakistan and earlier this month, the announcement of a bonus to farmers offered by Gujarat government, has led to increase in prices to Rs 4,300 to 4,800 per 100 kg in the market.

Increase in exports to Pakistan, Vietnam, and Bangladesh can decrease the expenses on cotton purchases made by the government by about 2 billion US dollar in the cotton marketing year that started on October one, 2015, according to experts.

So far this season, CCI has bought about 6 lakh quintals and Maharashtra State Cooperative Cotton Growers Marketing Federation (MSCCGMF) has purchased around 2.5 lakh quintals of the crop.