USDA forecast for 2024-45 predicts lower cotton production in India

The US Department of Agriculture's Foreign Agricultural Service (FAS) has revised its forecast for India's 2024-25 cotton production to 25 million 480 lb. bales, a decrease of 2 per cent from previous estimates. The decline is due to a shift in farmer preferences towards more profitable crops such as paddy and pulses.

Currently, cotton planting is complete on 11 million hectares, with sowing continuing in southern regions. Indian lint prices are currently eight to nine cents above global rates, leading mills to import cotton until new supplies are available in October.

Despite lower production forecast, mill consumption is expected to rise by 2 per cent to 25.5 million bales. This increase is driven by stronger demand for cotton yarn and textiles in international markets. The situation reflects a dynamic cotton market in India, balancing reduced domestic production with a growing appetite for cotton products abroad.