India has slightly revised up its cotton production estimate for 2024-25 to 291.35 lakh bales, driven by a better crop in Odisha. However, demand for cotton is slowing down.
Cotton consumption has fallen by 8 lakh bales to 307 lakh bales. Exports are also expected to fall sharply to 15 lakh bales, from 28.36 lakh bales last year. At the same time, imports have more than doubled to 33 lakh bales.
Despite a small increase in production, cotton prices are still under pressure due to weak demand. CAI has revised down its cotton consumption estimate by 8 lakh bales to 307 lakh bales. The main reason for the decline is that spinning mills are buying less cotton.
India’s cotton exports have declined. The new export estimate is 15 lakh bales, which is slightly lower than the previous estimate of 16 lakh bales, and a big decline from the 28.36 lakh bales last season. Only 10 lakh bales have been exported so far in the seven months to October 2024.
On the other hand, cotton imports have risen to 33 lakh bales – more than double the 15.20 lakh bales last season. By April 2025, 27.5 lakh bales have already been imported.
Another issue is the high remaining stock. By September 30, 2025, cotton stocks are expected to reach 32.54 lakh bales, up from 30.19 lakh bales last year. With spinning mills holding about 35 lakh bales, this is enough to meet the demand for 42 days, indicating that overall cotton utilization is still low.
