India's cotton imports are set to reach a record 39 lakh bales in 2024-25.
2025-08-18 11:10:36
India’s cotton imports for crop year 2024-25 surge to record 39 lakh bales on lower global prices.
India’s cotton imports will be a record 39 lakh bales of 170 kg each for the current 2024-25 crop year ending September, more than double the previous year’s 15.20 lakh bales. Lower international prices coupled with higher demand from mills for contaminant-free cotton has resulted in a surge in imports, said Atul Ganatra, President, Cotton Association of India (CAI).
“Our prices are 10 to 12 per cent higher today than the world market and that is the reason India has done the highest import crossing 39 lakh bales and nearly 40 lakh bales,” Ganatra said. Previously, India’s cotton imports had touched a high of 31 lakh bales during 2022-23, when the domestic prices had soared touching a record one lakh rupees per candy (356 kg).
Further, Ganatra said the Indian companies have already started contracting cotton import for the next crop year starting October as the international prices are cheaper. “In the last 10 days alone, 1.5 lakh bales has been contracted for the October-November-December delivery,” Ganatra said.
Currently, the Brazilian cotton is available at ₹51,000 per candy for any port delivery – say at Tuticorin, Mundhra or Nhava Sheva. Due to the 11 per cent import duty, it is costing ₹56,000. However, the mills, which are doing lot of direct exports can buy on open licence for which the import duty is 4.4 per cent. “So they are finding the imported cotton cheap and best,” Ganatra added.
Of the projected imports of 39 lakh bales till September, about 33 lakh bales have already arrived at the Indian ports till end-July. “I believe half of the imports are from Brazil, while another 8-10 lakh bales have been imported from African countries, for which duty is half at 5.5 per cent. Another 3 lakh bales is imported from Australia under the duty-free quota,” he said.
As per the Commerce Ministry quick estimates, imports of cotton raw and waster registered a 61 per cent increase during the April-July period in dollar value terms. Cotton imports stood at $383.22 million during April-July this fiscal, up from $238.30 million in the same period last year. During April-March 2024-25, India’s imports of cotton raw and waste touched $1.219 billion, an increase of 104 per cent over previous year’s $598.66 million.
As per CAI, the pressing estimates for 2024-25 stood lower at 311.4 lakh bales of 170 kg each, down from 336.45 lakh bales in the previous year. Domestic demand during the year is projected marginally up at 314 lakh bales (313 lakh bales in the previous year) and closing stocks at 57.59 lakh bales (39.19 lakh bales).
