CAI raises domestic pressing estimate for MY25-26

The Cotton Association of India (CAI) has upwardly revised its domestic pressing estimate for the MY25-26 to 317 lakh bales, a significant increase from the initial projection of 309.50 lakh bales. This was primarily due to good yields in Telangana and Maharashtra, this adjustment offers a buffer for a sector previously concerned by lower production forecasts. However, this supply increase coincides with a projected 2.8 per cent decline in domestic consumption, estimated at 305 lakh bales, reflecting a cautious industrial sentiment.

The sector currently faces a complex trade environment. While apparel exports grew by 2.36 per cent during the April-December 2025 period, the broader textile category including yarn and fabric fell by 2.19 per cent. Industry experts attribute this divergence to a 50 per cent tariff imposition by the US on certain Indian textile goods and restricted land-port access in Bangladesh. These geopolitical shifts have pressured profit margins despite rising top-line revenues in the garment segment.

Total cotton supply for the season is now pegged at 427.59 lakh bales, including 50 lakh bales of imports. As ending stocks are projected to climb to 107.59 lakh bales, the industry is urging for a Cotton Price Stabilisation Fund to mitigate price volatility and maintain global competitiveness in high-value-added segments.

The Cotton Association of India is the premier trade body representing the entire cotton value chain, from ginners to textile mills. It monitors the 11 major cotton-growing states, providing critical data to stabilize the $350 billion-target sector. CAI aims to harmonize domestic supply with the government’s 5F (Farm to Foreign) export vision.