Cotton farmers cut sales on price rise hopes

India's cotton supply is likely to be tight in the next few weeks as farmers in most states are stocking their produce, hoping that prices will rise further, growers and traders said.

Cotton prices in the world's top producer after China have already risen 20 percent to about 3,200 rupees (USD69) per 100 kg in the past six weeks, prompting textile firms to demand a ban on cotton exports.

Exports in 2009/10 are set to jump 57 percent to 5.5 million bales (1 bale="170" kg), textile commissioner and chairman of Cotton Advisory Board, AB Joshi, said last month.