India's cotton exports may drop this season by less than expected. Exports picked-up late 2014 though the levels are still well below a year before. The pace of exports accelerated to 7,80,000 bales during December, the highest level since April. Large shipments were made to Vietnam and Indonesia.

Recovery is attributed largely to the weakness in the rupee, which has depreciated by five per cent since August and made Indian cotton prices competitive globally. The raised export hopes come despite a weakened forecast for Indian production. Yields have dropped in the state of Gujarat, which with Maharashtra is one of the two main cotton growing states.

Cotton arrivals from Gujarat and Maharashtra are down 16 per cent year on year so far in 2014-15. There have been pest outbreaks in the coastal belt, affecting the last crop picking, and deficient rains in the Saurashtra region of Gujarat. In spite of this, India may still be the world’s top cotton grower, overtaking China for the first time in more than 50 years. China's output has been dented by a drop in sowings stemming from its subsidy reforms. India is the world’s second largest exporter of cotton.