Cotton production in India drops to 295 lakh bales, imports to rise

India’s cotton production for the 2024-2025 season, ending in September, is estimated at 295 lakh bales, down from 325 lakh bales last season, says the Committee on Cotton Production and Consumption.

The committee, projected cotton imports will rise to 25 lakh bales, up from 16 lakh bales in 2023-2024. Exports are expected to reach 18 lakh bales. Domestic cotton consumption by the textile industry is forecast at 302 lakh bales, nearly seven lakh bales lower than the previous season. Closing stock for the season is likely to be 30 lakh bales, significantly lower than the 62 lakh bales in 2022-2023 and 47 lakh bales in 2023-2024.

With textile and clothing exports improving, yarn demand has surged. However, mills may face shortages between August and November. S K Sundararaman, Chairman of the Southern India Mills Association (SIMA), urged the government to remove import duties on cotton to ensure sufficient availability for the industry.

The decline in production, coupled with rising imports, is set to impact cotton prices and industry dynamics in the coming months.