The price of cotton candy increased by 0.85% to reach 56,960, driven by strong demand from Bangladesh and Vietnam for Indian cotton, despite worries over slowing milling demand and weakening yarn demand worldwide. Still, hopes for a stronger crop in places like Australia limited the positive.

The ICAC (International Cotton Advisory Committee) has forecasted growth in cotton-producing areas, production, trade, and consumption for the 2024–25 season. Due to decreased output and increased consumption, it is predicted that India’s cotton inventories will fall by around 31% in the 2023–2024 marketing year, to their lowest point in more than three decades.

It is anticipated that this stockpile reduction will restrict exports from the second-largest manufacturer in the world, thus supporting worldwide pricing and possibly driving up domestic costs and impacting the profit margins of nearby textile companies. From 1.55 million bales a year ago to 2.20 million bales this season, India may export more cotton.

India’s cotton production is predicted to drop by 2% in the 2024–2025 marketing year as a result of farmers switching acreage to higher-yielding crops. However, as global demand for yarn and textiles recovers, mill consumption is expected to rise by 2%. Furthermore, it is anticipated that China will import more cotton during the same time due to increased demand for textile and apparel items both domestically and internationally.