India’s cotton exports to rise to 28 lakh bales in 2023-24: USDA

India's cotton exports are poised for a significant growth in the 2023-24 crop year, due to robust demand from Bangladesh and Vietnam. According to the United States Department of Agriculture (USDA), exports are projected to reach 28 lakh bales (17.5 million 400-pound bales), which is almost 80 percent increase from the previous year's 15.5 lakh bales.

While the export growth is promising, India's domestic cotton consumption is also expected to rise to 317 lakh bales during the year. As of August, 291 lakh bales had already been consumed. To meet growing demand, cotton imports have risen to 16.4 lakh bales compared to 12.5 lakh bales last year.

However, the global cotton market is facing some challenges. The US, a major cotton producer, is expected to see a decline in production, mill use, and exports due to damage caused by Hurricane Helene. At the same time, global cotton production is projected to increase overall, with gains in China, Brazil, and Argentina offsetting reductions in the US and Spain.

In India, the revised cotton production forecast for the 2024-25 season has led to a slight uptick in cotton candy prices. The USDA's earlier downward revision of India's production forecast to 30.72 million bales due to crop damage and pest infestations had contributed to a decline in projected ending stocks. While the acreage under cotton cultivation has decreased, higher yields due to timely rains are expected to mitigate the impact.

Despite the positive outlook, price gains for Indian cotton remain limited due to moderate demand and sluggish export activity, particularly to key markets like Bangladesh. To sustain its growth momentum, India will need to address these challenges and explore new markets to diversify its exports.