India’s cotton production may rise 12 per cent during 2017-18. Export of raw cotton from India has witnessed a significant increase in recent years along with decreased cotton imports into the nation. The country is now the second largest textile and clothing exporter in the world, contributing around five per cent to the global textile and clothing trade.

As Chinese cotton auction started at a 25 per cent premium over prevailing fiber rate in India, Indian exporters are hoping for a revival in cotton yarn exports. The Indian textile industry is estimating cotton production at 380 million bales against 340 million bales produced last year.

India is emerging a favorable destination for Latin American countries as they want to reduce their dependence on Chinese markets for imports and are looking towards diversifying their markets. During April-December 2016, India’s cotton yarn exports slumped by 12 per cent. During the last 16 years, the area under cotton production has doubled with about 10 million farmers producing cotton in India. However, though the country produces good quality cotton, it is sold at a discounted price because of unwanted constituents and contaminants. The textile industry will use biotech and better irrigation and mechanization.