The Indian cotton market is strong pricewise; despite fears over slow textile consumption had caused a panic, however, the reasons for this upward trend in prices are varied.

The cumulative arrivals of Indian cotton are far lower than previous years, with a large gap between current arrivals and the production forecast. This has resulted in a decrease in the supply of cotton and has therefore supported local cotton prices.

Also, there has been a growing demand for cotton from the downstream market. Buyers in the downstream industry have been active, leading to an increase in cotton yarn transactions and prices. This is due to local spinning mills operating at a high level, with lower inventory than in previous years.

Additionally, orders from China, Turkey, and Europe have increased the consumption of cotton. The government's policies to support downstream capacity expansion have also increased confidence in the textile industry.

With low supply and high demand expectations, Indian cotton prices are on an upward trend. If the subsequent reduction in Indian cotton arrivals intensifies domestic cotton supply and demand contradictions, it is possible that the government may remove the cotton import duty, which could support global cotton prices.