Opening cotton stocks for MY26-27 rise to 93.59 lakh bales: CAI

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India’s spinning mills and downstream textile weavers face a favorable raw material supply scenario as opening cotton stocks for the 2026-27 marketing season reached an unprecedented 93.59 lakh bales. With a projected 62 lakh bales in total imports, supported by temporary customs duty exemptions and an upgraded domestic harvest estimate of 339 lakh bales, the raw fiber stockpile gives significant inventory security for yarn manufacturers navigating fluctuating international demand.

While annual domestic consumption holds steady at 348 lakh bales, the rise in raw fiber inflows has reduced spot price spikes across primary textile hubs. However, spinning and weaving mills face operational issues in transmitting recent raw material cost adjustments, such as Cotton Corporation of India price increases of Rs 200 per candy, down to fabric and garment buyers who remain constrained by subdued overseas retail orders.

Abundant raw fiber reserves allow domestic spinners to secure long-term yarn supply contracts, though downstream apparel margins stay tight until international retail demand strengthens, states Atul S Ganatra, Crop Committee Chairman, Cotton Association of India. The impending end of the duty-free import window in October requires textile enterprise leaders to optimize inventory holding strategies before seasonal pricing shifts take effect.