Farmers in India may plant fewer acres of cotton as falling demand from China cuts exports to the lowest level in six years. The area is set to drop as much as 10 per cent in the 12 months starting October 1. A smaller harvest in India, the largest exporter after the US, would ease a global surplus that sent New York prices to a five-year low in January. Exports from India will probably drop to seven million bales in the 12 months ending September from 11.79 million bales a year earlier. That would be the lowest since 2008-2009.

China, the world’s biggest buyer, is importing less of the fiber. That will contribute to a 41 per cent drop in Indian shipments this year. Because of lower prices many farmers in India are thinking of growing less cotton. Farmers worldwide will cut planting by about seven per cent this year, leading to a nine per cent decline in output to 23.9 million tons in the 12 months starting August 1.

Futures in Mumbai rallied seven per cent in April, the biggest monthly advance since December 2013, and they advanced 7.6 per cent in New York. Planting will gather pace with the monsoon rains in June.