Cotton prices have gone up by as much as 38% in the domestic market since last year. Textile companies anticipate a 10% dip in profit margins on account of high prices. Prices of cotton are shooting up despite the estimated production of 31.5 million bales (of 170 kg each) against the domestic consumption of 24.1 million bales. Exports are expected to rise about 47% to 8.5 million bales in cotton year 2007-08 against 5.8 million bales in the previous year. The government is also considering the option of bringing down import duty on cotton. Presently, raw cotton attracts an import duty of about 14.7%.