Price information is relevant to all sectors and participants in the cotton industry, but understanding of the roles of price information by industry is not widespread. This paper examines the role of prices and price information in the operation of the cotton industry. More specifically, the objective is to demonstrate the implications of incorrect price information on the efficiency of the cotton and textile sectors. Research examples and case studies are used to demonstrate the implications of incorrect price information on different segments of the cotton industry. These case studies and results from previous research indicate that incorrect information can affect both the operational and pricing efficiency in the cotton market. These are examined with cases from variety selection, ginning, contracting, and mill purchasing. Incorrect price information also has an impact on broader issues such as trade, international competitiveness, and government policy.
