The Indian textile industry witnessed a significant surge in cotton imports during the initial months of the 2024-25 season. Driven by a combination of factors including lower global prices, a decline in domestic production, and adverse weather conditions, imports jumped threefold compared to the same period last year.
Millers capitalized on competitive global prices during August-September, contracting for substantial import volumes. While some shipments faced delays, arriving in October, a total of 9 lakh bales are estimated to have reached Indian ports by November-end.
The Cotton Association of India (CAI) anticipates a 25 lakh bale import figure for the entire 2024-25 season, a substantial increase from the previous year’s 15.20 lakh bales. This upward trend reflects the industry’s efforts to secure adequate raw material supplies amidst a projected 7% decline in domestic cotton production.
Domestic production for 2024-25 is estimated at 302.25 lakh bales, impacted by reduced acreage and adverse weather conditions in key growing regions. Despite lower production, domestic cotton prices have remained under pressure due to muted demand from mills and the influence of global price trends.
With prices falling below the minimum support price (MSP), the Cotton Corporation of India (CCI) has emerged as a major buyer, acquiring over 31 lakh bales by mid-December.
While exports during the initial months showed a modest increase, the overall export forecast for 2024-25 has been revised downwards to 18 lakh bales, reflecting potential challenges in global market competitiveness.
Industry observers are closely monitoring the evolving supply-demand dynamics, with concerns surrounding potential inventory build-up amidst increased imports and a possible slowdown in domestic consumption. The CAI will continue to assess the market situation and provide timely updates to stakeholders in the Indian textile industry.
