Indian cotton prices have fallen by 3% during the past two weeks, pushed down by weak demand from China as a result of the Chinese New Year holiday and the outbreak of the Coronavirus.

However, prices are 5% above international cotton prices due the country's minimum support price (MSP).  This is making India cotton uncompetitive in the global market.

The Cotton Corporation of India has purchased 4 million bales of its target 10 million bales at the MSP.