Q1) Why prices have increased?

Devastating floods in Pakistan - one of the world's largest cotton producers and fears over this year's crop in China have sent cotton prices surging to 15-year highs in recent weeks.
Next said cotton prices were 45% higher than this time last year, and that this, along with the planned VAT rise, meant price rises were "inevitable" in the spring of next year predicting increases of between 5% and 8%.

Q2) What is the consequence upon cotton production?

Department store Debenhams warned that the entire UK clothes retail industry faced higher prices, because of the rising cost of cotton and the weak pound.
Primark has also said that rising costs may eat into its profit margins over the coming year.
For the six months to the end of July, Next's High Street sales were towards the lower end of previous guidance, but the Next Directory home shopping business produced a better-than-expected performance, with a 7.8% rise in first-half sales.
The firm said that the real opportunities it saw for growth were through its website and catalogue and by opening new shops focussing on homeware and furniture.

Q3) What impact will it have on the consumer?
Consumers will decrease as the prices have risen so drastically. Less cotton will be bought which mean clothing and furniture companies will suffer and this will have a rapid effect on the economy.