Cotton production in India is expected to increase by 2 lakh bales to 304.25 lakh bales in 2024-25. This rise will mainly be driven by a higher-than-expected production in Telangana, as per a report by the Cotton Association of India (CAI). This revision in crop production estimates have also caused cotton prices to decline by 0.91 per cent to Rs 52,370.

Cotton production in North India is projected to decline by 3.5 lakh bales during the season while consumption is forecasted to increase by 2 lakh bales to 315 lakh bales. Supported by a higher output in India and Argentina, global cotton production is projected to 117.4 million bales in 2024-25, as per the WASDE report.

Meanwhile, cotton kapas arrivals in North Indian states of Punjab, Haryana, and Rajasthan declined by 43 per cent drop in kapas arrivals until November 30 compared to last year. This led some farmers to withhold supply resulting in raw material shortages for ginners and spinners in Punjab. Despite these factors, cotton prices in India continue to remain stable due to an increased demand from the garment industries and strong export orders. As of December-end, total cotton supplies in India stood at 176.04 lakh bales, with consumption reaching 84 lakh bales and exports at 7 lakh bales.