India’s cotton production for the 2024-25 season is projected to decline by 7 percent, falling to 302 lakh bales, according to a report released by the trade body Cotton Association of India (CAI) on Tuesday. The decrease is attributed to a reduction in the area under cotton cultivation and damage caused by excessive rainfall. In this Kharif season, cotton sowing has declined by around 10 percent, with the area dropping from 126.9 lakh hectares last year to 112.9 lakh hectares, well below the average of 129.34 lakh hectares.
India's cotton imports are expected to rise to 25 lakh bales in the new season, which began on October 1, up from 17.5 lakh bales a year ago, according to the Cotton Association of India (CAI). Conversely, the country's cotton exports are projected to fall to 18 lakh bales, down from 28.5 lakh bales a year ago.
This projected drop in output is a concern for both the domestic textile industry and global markets, as India is one of the largest producers and exporters of cotton. Unseasonal rainfall has significantly affected key cotton-growing regions, causing damage to the crop and resulting in lower yields.
In addition to local weather challenges, the reduction in the area planted with cotton reflects farmers' shift toward more lucrative crops or those requiring less water. A growing number of farmers have transitioned from cotton to groundnut or rice cultivation, motivated by higher potential yields and reduced risks compared to cotton.
The dip in cotton production could lead to higher cotton prices domestically, potentially impacting the cost of raw materials for India’s textile sector, which heavily relies on cotton. Global cotton markets may also feel the ripple effects, as reduced supply from India could influence global trade flows and pricing.