India is the second largest cotton producer in the world next only to USA. The cotton production in USA and china has sunk in the last year which has led to a global cotton crisis, to add fuel to crisis India has imposed a cap on the export of the cotton. The price of the cotton from .62 cents has moved up to $1.20 per pound. Now that government has announced to review the cap on the export of cotton the yarn is very likely to go up in the domestic market and price in the international market fall or stabilise. December will be a month full of action as far as cotton and yarn market is concerned.