India's cotton exports to grow 27%, says CAI

The Cotton Association of India (CAI) predicts a significant rise in cotton exports for the current crop year (ending September 2024). They estimate a 27 per cent increase, reaching 28 lakh bales, compared to 22 lakh bales exported in the previous year.

This jump is attributed to competitive pricing, with Indian cotton being 8-10 per cent cheaper than international prices between December 2023 and March 2024. Bangladesh, China, and Vietnam are the main destinations for these exports.

While cotton production for 2023-24 is estimated at 309.70 lakh bales, slightly lower than the previous year's 318.90 lakh bales, the total cotton supply remains healthy at 315.86 lakh bales as of April 2024. This includes carry-over stock, imports, and domestic production.

Domestic cotton consumption is estimated at 192.50 lakh bales by April 2024, with exports reaching 21.50 lakh bales. Stock levels are also comfortable, with 40.50 lakh bales held by textile mills and 61.36 lakh bales by other stakeholders like the Cotton Corporation of India and traders.

The CAI maintains its total cotton supply projection for the season at 359 lakh bales, with imports expected to be higher by 7.90 lakh bales compared to the previous year. This increase in imports suggests a continued focus on meeting domestic and international cotton demand.