Indian cotton prices are expected to surge in June-July, according to the Cotton Association of India (CAI).

The industry body predicts that prices will rise to between Rs 70,000-75,000 ( US$ 855-916) per candy. Currently, Indian mills are experiencing strong demand due to high consumption of cotton, however, global cotton prices are trading at a four-month low.

The rise in cotton prices to weak global demand, is attributed to a decrease in cotton exports. The country's cotton exports are expected to be around 25 lakh bales, down from 42 lakh bales last year.

Due to lower cotton production and higher Indian cotton consumption, India may soon become a net cotton importer rather than a net exporter.