The Cotton Association of India (CAI) has increased its export projections for the current season to 22 lakh bales, with the potential to reach 25 lakh bales. This uptick in estimates underscores India's growing influence in the global cotton trade, driven by competitive pricing and heightened demand from key markets such as Bangladesh, China, and Vietnam.

During the initial five months of the season, India’s cotton exports matched the entirety of the previous marketing season, totaling 15 lakh bales. The primary destinations for these shipments are Bangladesh, China, and Vietnam.

Indian cotton prices were notably lower by approximately Rs 4,000-5,000 per candy compared to international prices, particularly from December to February, which attracted overseas buyers. Cotton imports amounted to 4 lakh bales, while consumption was estimated at 137.50 lakh bales by the end of February. Projections for stocks with mills and various entities indicate a relatively tight balance sheet.

CAI has revised the cotton production estimates for the ongoing 2023-24 marketing season upwards by approximately 5 per cent to 309.70 lakh bales, although still below the previous season's production of 318.9 lakh bales. 

Adjustments in crop estimates across various states including Rajasthan, Gujarat, Maharashtra, Telangana, and Karnataka have contributed to this increase.

Estimates for cotton consumption for the 2023-24 season has been raised by 6 lakh bales to 317 lakh bales due to increased offtake by domestic mills.

Closing stocks for the season ending September 2024 are forecasted at 20 lakh bales, signaling a very tight balance sheet.

The substantial growth in Indian cotton exports for the 2023-24 season, fueled by competitive pricing and robust demand, represents a significant milestone for the country's textile industry.