Following a 30 per cent increase in domestic prices in the last three months and increase in dependence on commodity in Pakistan, West Africa, Brazil and Australia, India's cotton imports may double this year. Indian Cotton Federation expects cotton imports to increase from 1 million tons last year to 2 million tons this year. The shipments have already started arriving. The NCDEX price of 29 mm cotton, ex-warehouse in Rajkot, increased 32% to Rs 20,727 per bale on July 5 from Rs 15,704 per bale on April 1.

As per Cotton Association of India, India's cotton production in 2015-16 declined 11 per cent compared to the previous financial year. This led to a rise in domestic prices. The prices may remain stable till November. However, supplies may take a little longer to ease.

The delayed sowing in some parts of India due to delayed onset of monsoon may delay the arrival of fresh kharif crop. Considering that Diwali falls in the last week of October, there could be delay in bulk arrivals of kharif cotton. The difference in the domestic and international prices led to rise in imports. Bulk imports from Australia, expected to be between 5-6 lakh bales, have resumed after nearly a decade.