This has narrowed down the gap between the production and consumption of world cotton and has left no room for any major changes in prices during 1996-97. It is to be noted that one factor that has a major influence on world cotton prices is the magnitude of imports by China. According to the International Cotton Advisory Committee, Cotlook A Index has averaged 77 US cents per pound during the first half of the current season, compared with an average of 89 cents during the corresponding period of 1995-96. The main reason for the decline in prices is said to be reduced imports by China and lower expectations among exporters following higher recorded during the last two seasons. The Cotlook A Index for the whole year 1996-97 is expected to average 80 US cents per pound, according to the International Cotton Advisory Committee.
Cotton is known as a highly pestprone crop all over the world.
A major part of farmers expenditure on raising the crop is spent on checking these pests. According to information available, about 55 per cent of the total pesticide consumption on annual crops in India is accounted for by cotton. Among the major pests, boll warms are said to cause the maximum harm to the crop. In the United States, apart from boll worms, boll weevils are equally serious pests. India imports a sizable quantity of cotton from the United States.