India’s cotton exports are projected to increase by approximately 27 per cent to 28 lakh bales during the 2023-24 crop year ending in September. According to the Cotton Association of India (CAI), during the previous 2022-23 crop season spanning October-September, India’s cotton exports totaled 22 lakh bales.

Atul Ganatra, President, CAI, states, the rise in demand for cotton is a result of prices declining to 8-10 per cent lower than international prices from December 2023 to March 2024. India exports its cotton to primarily to countries such as Bangladesh, China, and Vietnam.

CAI also estimates cotton production to remain stable at 309.70 lakh bales during the April 2024 season at 309.70 lakh bales. However, this figure is lower than the 318.90 lakh bales produced in the prior season.

The total cotton supply by the end of April 2024 is projected to be 315.86 lakh bales. This includes 281.96 lakh bales from pressing, 5 lakh bales from imports, and an opening stock of 28.90 lakh bales.

Cotton consumption up to April 2024 is estimated to be around 192.50 lakh bales, with exports pegged at 21.50 lakh bales. The stock at the end of April is anticipated to be 101.86 lakh bales, comprising 40.50 lakh bales with textile mills—equivalent to over 45 days of consumption—and the remaining 61.36 lakh bales held by the Cotton Corporation of India, the Maharashtra Federation, and other entities (including MNCs, MCX, traders, ginners, and undelivered sold cotton).

CAI has also retained its total cotton supply estimate for the 2023-24 season at 359 lakh bales. This total includes an opening stock of 28.90 lakh bales, estimated cotton pressing of 309.70 lakh bales, and imports of 20.40 lakh bales. Cotton imports are projected to increase by 7.90 lakh bales during the year compared to the previous year, CAI notes.