The International Cotton Advisory Committee, a group based in the U.S., reports that prices for cotton dropped in April, the first drop in seven months. The reasons cited were a decline in demand and a switch to man-made fibers. The Cotlook A Index listed cotton at $2.44 per pound on March 8, but that slipped to $1.73 per pound as of April 28. Historically, though, these prices are still very high. Global cotton use for the 2010-11 fiscal year ended last March is estimated to have been 25.1 million tons, about the same as the previous year. Production, however, is expected to rise by 11 percent in 2011-12 to 27.6 million tons. Meanwhile, the Indian government has decided to raise the limit for exports of cotton yarn to 845 million kilos for the financial year ending in March 2012, up from last year's cap of 720 million kg. It has not yet decided whether it should limit exports of raw cotton.

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