India is expected to produce 25 million 480-pound bales of cotton in 2024-2025, but this represents a five-year low. Cotton production is on track to meet the challenges of the textile sector due to rising exports of value-added cotton-based products.
India’s cotton production for the 2024/25 marketing year is unchanged at 25 million 480-pound bales, the lowest in five years. Despite a four-year high of 461 kilograms per hectare, the area under cultivation has declined to 11.8 million hectares. Domestic ex-gin prices fell 9% to 82 paise last month, and the Cotlook-A index fell 4%.
Through MSP procurement, the government has stepped in to control market prices. The first purchase was worth 176,000 bales. The increase in cotton imports was driven by global price competition from Australia and the United States. Exports in October increased by 479% compared to the same month last year.
