India’s cotton exports in 2018-19 are likely to be down 30 per cent. Scanty rainfall and an attack of pink bollworms are likely to squeeze crop yields. The Western states of Gujarat and Maharashtra account for more than half of the country’s total cotton production. Some regions of these two states received as much as 22 per cent less rainfall than normal.

Farmers have adopted genetically-modified seeds known as Bt cotton that are resistant to bollworms, but it hasn't stopped the infestations. Pink bollworms consume the fiber and seeds inside a cotton plant's boll, or fruit, and yields fall. Lower shipments from the world's biggest producer of the fiber amid rising demand from top consumer China could support global prices.

India is the largest cotton producer in the world, followed by China, the US, Pakistan and Brazil. The five largest exporters of cotton are the US, Australia, Brazil, India and Uzbekistan. Five major consumers of cotton are China, India, Pakistan, Bangladesh and Turkey. Buyers are interested in sourcing cotton from India as they find it cost effective and less expensive in comparison to other countries.

Apart from neighboring countries, India has been receiving demands for cotton from several other countries, including Vietnam and Indonesia.