India’s cotton imports are projected to reach a record 39 lakh bales (170 kg each) for the 2024-25 crop year, more than double the previous year’s 15.20 lakh bales. This surge is attributed to lower international prices and increased demand from mills for contaminant-free cotton. Atul Ganatra, President of the Cotton Association of India (CAI), noted that domestic prices are 10-12% higher than the global market, making imports more attractive. Indian companies have already started contracting for imports for the next crop year, with 1.5 lakh bales contracted in the last 10 days alone for October-December delivery.
About 33 lakh bales of the projected imports had already arrived at Indian ports by the end of July. Ganatra stated that roughly half of the imports are from Brazil, with another 8-10 lakh bales from African countries and 3 lakh bales from Australia under a duty-free quota. The Commerce Ministry’s estimates show that imports of raw cotton and waste increased by 61% in dollar value during the April-July period and by 104% for the full 2024-25 fiscal year compared to the previous year.