10822 The Impact of India's Minimum Support Price On World Cotton Markets

Wednesday, January 6, 2010: 2:15 PM
Galerie 3 (New Orleans Marriott)
Suwen Pan , Cotton Economics Research Institute at Texas Tech University
Darren Hudson , Cotton Economics Research Institute at Texas Tech University
Maria Mutuc , Cotton Economics Research Institute at Texas Tech University
We examine the impacts of the increase in India's Minimum Support Price (MSP) on global cotton markets. India recently increased its MSP to around 76 cents/lb. equivalent. Our results suggest that this increase in the MSP has a larger overall impact on global cotton prices than the entire U.S. cotton program.