The good monsoon this year has resulted in the good quality bumper cotton crop. With the bumper crop and high world prices it is expected that cotton exports will surge this year.

With the best monsoon rains in a decade, India is expected to produce 16.5 million bales of cotton in this crop year against 13.6 million bales a year ago.

According to traders shippers had booked 150,000 to 200,000 bales (of 170 kg each) of cotton for exports, mainly to Bangladesh and Europe, since Indian prices were competitive.

"The situation has changed. We are now selling cotton and not buying," a leading Bombay-based trader said.

Dealers estimated the country''s exports of cotton in the year to September 2004 of up to one million bales if international prices remained firm.

India usually exports around 100,000 bales annually and sales in the range of one million bales were done only in 1995/96.

Traders said top quality long staple Indian cotton was priced at 23,300 rupees a candy compared to the global level of around 27,000 rupees for a similar variety. One candy equals 356 kg.

Indian cotton prices were around 17,000 to 19,000 rupees a candy at the beginning of last year''s season.

"We expect the prices to cross the 24,000 rupees mark in the coming days in line with the global trend, but we will still be cheaper," another trader said.

"This year, the yield is also going to go up because there have not been many reports of pest attacks," a trader based in Punjab said.