New Delhi, Aug 2 (KNN)  Owing to increasing demand for Indian cotton, both within the country and internationally, the price of cotton has reached the highest in the last three years.

According to the Cotton Association of India, prices have crossed Rs 46,600 per candy which is equivalent to 356 kilograms.

While the depreciation in rupee has benefitted exporters, experts say, heavy rainfall during the last two months has caused damage to cotton crops which is likely to further strengthen cotton prices.

Significantly, government estimates suggest exports are likely to be 10 million bales (170 kg each) in the 2012-13 cotton season, about a fifth of the world total of export.

China has emerged as a major buyer of yarn from India.

As far as cotton export registrations are concerned, they surged 73 per cent during June compared to the corresponding period last year, to a record 142,297 tonnes.

The government in August relaxed restrictions on the export of cotton by the state-run Cotton Corporation of India (CCI) in the current season to end-September as the world's second-biggest cotton grower expects a better crop in 2013/2014.  (KNN)