US Sees India as Key Cotton Buyer in 2026, Expects Stronger Demand Amid Global Market Shifts
US Cotton Trust Protocol President Gary Adams says India remains an important market as USDA raises cotton import estimates
The United States views India as a market with potential to purchase its cotton and expects the country to emerge as a key importer in 2026, according to Gary Adams, President of the US Cotton Trust Protocol.
“If we look at India, it is an important market for US cotton. In fact, in this marketing year, we are just competing for India as the fourth-largest market for US cotton,” he told businessline in an online interaction.
Adams said that with the area under cotton declining in India and concerns over the monsoon, the country could become a “stronger” market in 2026.
In its latest Cotton: World Market and Trade report, the US Department of Agriculture (USDA) raised India’s cotton imports this season to September to 56.9 lakh bales (170 kg each) from the earlier 53.18 lakh bales.
Gary Adams, President of the US Cotton Trust Protocol.
China Not as Strong a Market
According to Adams, Vietnam has been the largest market for US cotton exports over the past year, while Bangladesh has also emerged as a strong and steady market, particularly as its textile industry continues to grow.
“The market that has not been as strong over the course of the past year is China. With just some of the trade tensions that are going on between the US and China, we’re not seeing as much US cotton going to China over the past year,” said Adams.
The USDA, in its latest estimates for the 2026-27 season, has projected a 1.5-2 per cent increase in global cotton demand from last year. The agency has forecast production to increase to 117.3 million US bales (21.77 kg), while consumption is expected to rise to 122 million bales, up by 200,000 bales.
Adams said the primary concern of the US Cotton Trust Protocol, which completes six years of operation, is the rise in energy prices. He noted that if prices continue to increase, it could affect cotton consumption or make consumers more cautious about spending.
“I think that certainly could play out if we see this continue forward later into this year,” said Adams, who is in India to meet the textiles industry and attend the Bharat Trade Show.
He added that higher oil prices could influence overall consumer expenditure on fuels. “That’s coming into play, particularly as consumers look at their spending habits. The other factor is that higher oil prices have translated into an increase in prices of synthetic fibres, such as polyester, that are petroleum based,” he said.
According to Adams, this has renewed demand for cotton. He added that “cotton prices are holding at a fairly good level.”
On the Inter-Continental Exchange, cotton is currently quoting at a two-month high of over 82 cents a pound following higher crude oil prices in the wake of renewed US-Iran tensions.
The US Cotton Trust Protocol has requested the removal of import duty on cotton for short and medium staple cotton. At present, the government has suspended the 11 per cent import duty only on long staple cotton until September 30. The association has communicated this request to the government.