Cut In Cotton Prices?
By: Allison Morrison
Updated: September 1, 2009
West Texas cotton farmers could soon be hurting because of a decision on the other side of the world.
According to the Texas Tech Cotton Economics Research Institute, a recent subsidy increase for India's cotton farmers could drop cotton prices as much as 6% around the world.
That could mean U.S. farmers see their cotton prices drop by an average of nearly 3% over the next five years.
Plains Cotton Growers, Roger Haldenby, tells us West Texas farmers may not necessarily feel a negative impact by India's cotton price.
"If Indian cotton is being bought by the Indian government at $.72, unless they want to put it on the open market and take a loss on it, it's going to make our cotton, whatever price it is below $.72, more competitive than Indian," Haldenby says.
India is the world's second largest cotton producer behind China.
