According to the Cotton Association of India (CAI), India’s cotton production is expected to decline to 301.75 lakh bales in 2024-2025 from 327.45 lakh bales in the last season. Although the quality of cotton is still good, the decline is due to lower yields in Gujarat and the northern states. By January 2025, domestic demand is expected to touch 315 lakh bales of cotton, while total supply of cotton is expected to touch 234.26 lakh bales. Exports, which were 28.36 lakh bales in the last season, are likely to decline to 17 lakh bales.
In other developments, the Cotton Corporation of India (CCI) is expected to procure over 100 lakh bales at the Minimum Support Price (MSP) to stabilise market conditions and support farmers. Additionally, CAI has maintained its domestic consumption estimate at 315 lakh bales. Lower exports and higher domestic consumption will lead to tight supplies in the second half of the season, which will impact price trends.
