India's cotton exports up 68% on strong demand

India's cotton exports have increased in the past year. Shipments jumped 68 per cent to 26 lakh bales in the first nine months of the 2023-24 season compared to the same period last year. This surge is driven by a combination of higher cotton production and strong demand from key markets like Bangladesh and Vietnam.  

Despite the bumper crop, the Cotton Association of India (CAI) anticipates ending the season with lower closing stocks of 20 lakh bales compared to the previous year's 28.9 lakh bales. This suggests that strong demand has absorbed much of the surplus. Looking ahead, the CAI forecasts increased cotton demand and supply for the upcoming year. However, with ending stocks projected at 77.29 lakh bales, including a comfortable 46-days supply for textile mills, the industry seems well-positioned.

While exports have been a major driver of growth, the CAI maintains its overall balance sheet estimate, indicating a cautiously optimistic outlook for the cotton sector.