India Cotton Supplies Slump as Banknote Switch Roils Farmers
- Supplies not reaching physical market on cash crunch: Kotak
- Cash switch also limiting cotton yarn demand: TDN Fibers
Modi's Money Crackdown Boosts India Bonds
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Cotton supplies at Indian markets dropped by more than half after Prime Minister Narendra Modi’s surprise move to withdraw and replace high-denomination banknotes.
Prices have already climbed about 4 percent as farmers withhold supplies, Aurobinda Gayan, vice president for research at trader Kotak Commodity Services Ltd., said in an interview on Tuesday. They may climb further through early next week before retreating, he said.