Raw cotton prices are witnessing a surge owing to a fall in global production by up to 5-7% this year and greater demand. Till May 2008, more than 95 lakh bales of raw cotton were exported to countries like China, Pakistan, Bangladesh and Taiwan," said Anandbhai Popat, secretary of Saurashtra Ginners Association. According to experts, the main reason for the fall in production is a shift by major cotton producers like the US to more lucrative crops like corn. Besides India and the US, China and South Africa are the other major producers of cotton."US hedge funds are looking at cotton as a lucrative investment. Moreover, rising demand for cotton has led to the price escalation. The price of US cotton for December 2008 future contract has witnessed a steep hike - from 70 cents per lbs to 98 cents per lbs in the last two months, coming down to 82 cents per lbs at present," said Mr Popat.   more »