Tax change in India more bad news for cotton use

Cotton continues to face challenges from manmade fibers, production increases.

Just when you think cotton is starting to make some headway in its struggles with manmade fibers, someone comes along and throws another obstacle in its path, according to Informa Economics’ H.W. Kip Butts.

The government of India has changed its tax structure so that it favors the use of polyester over cotton in its textile mills. Butts, senior cotton analyst and director of energy services at Informa Economics, says the new tax law could have a negative impact on world cotton consumption.

Butts, a speaker at the Southern Cotton Ginners Association summer meeting in Lafayette, La., said an unexpected increase in China’s cotton area could also add to cotton supplies at a time when the market had been looking more favorably on the supply and demand outlook for the natural fiber.

For more on Butts’ presentation visit

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