Poor prognostication skills by Indian agriculture experts could be good news for American cotton farmers.
Earlier this month, cotton prices jumped after India announced plans to ban all cotton exports.
India is believed to have opted for a cotton-export ban because the Asian nation is concerned about a possible supply crunch. According to government officials, India’s cotton exports may have overshot government targets last year, according to Southeast Farm Press.
A few days later, officials with the country’s commerce industry said they would allow cotton cleared by customs before March 4 to be exported, easing the situation somewhat, according to an Indian agriculture blog.
It’s unclear if the price surge will be long-lasting, according to Southeast Farm Press.
“We’ll probably continue to see higher prices in the short-term,” Max Runge, Auburn University Extension economist told the publication. “But I don’t think we can count on any long-term effects.