The cotton crop in Maharashtra has been damaged by unseasonal rains. Due to the high moisture content the damaged crop is estimated to fetch prices that will be 30 per cent to 35 per cent lower than the minimum support price.

India's raw cotton exports fell 75 per cent during the first half of the current financial year due to high domestic prices and the availability of cheaper cotton from Brazil, the United States and Vietnam. The spinning industry saw disruptions in production in the second quarter because of reduced demand and volatility in cotton prices. While demand from China improved marginally in August and September, further improvement will be healthier for the spinning industry which has been facing margin pressure and low capacity utilisations. Manmade fibers saw the second consecutive month of stabilisation on the back of stable crude prices.
Fabric exports improved in the first half of the new year due to an improvement in the quality of Indian fabrics and addition of newer markets. The main markets were Bangladesh, Afghanistan and Sri Lanka. A sharp rise in imports of cheap apparel from Bangladesh has rendered the Indian textile value chain uncompetitive. Readymade garments recorded a de-growth of 14 per cent month-on-month in September due to a steep fall in demand from the United States and Britain.