On June 15th, supported by rising cotton futures prices and minimum purchase prices, Indian cotton farmers have expanded the area of cotton cultivation. Vinod TP, an analyst at Geojit Financial Services, said that India’s cotton cultivation area has increased by 24% to 1.7 million hectares so far this year.

In the first 14 days of June, cotton prices rose by as much as 3%, and the Federal Ministry of Agriculture of India raised the minimum cotton purchase price by 5%, which prompted farmers to increase the area of cotton cultivation. The benchmark cotton futures contract delivered by Indian multi-commodity exchanges in recent months jumped 3% to Rs 16,120 per package. The Indian government has also raised the minimum purchase price of long-staple cotton in the current crop year by Rs 442 to Rs 9,376 per pack.

Ajitesh Mullick, vice chairman of Religare Brooking Ltd, said expectations of increased exports to China, Vietnam and Bangladesh in the coming days could support Indian cotton prices.