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Informist, Monday, Apr. 6, 2026

 

MUMBAI – The US Department of Agriculture's Foreign Agricultural Service has projected India's cotton area under cultivation in the marketing season 2026-27 at 11.5 million hectares, up 3% from the previous year. Production is projected at 25.2 million bales of 480 pounds each, up 7% from the previous year.

 

In the previous marketing year, the Foreign Agricultural Service had estimated India's cotton output at 23.8 million bales, 4% higher than the government's figure of 22.8 million bales, according to a note by the agency. Yields are expected to increase 3% to 477 kilograms per hectare due to recovery from last year's untimely heavy rains and expectations of a normal monsoon, it said in a post released on Friday.

 

India's cotton consumption is likely to rise 3% to 25.8 million tonnes in 2026-27, the post said. "The increase is supported by India signing key free trade agreements, which are expected to take effect by the next season. In addition, rising U.S. demand for Indian cotton apparels and textiles is projected to drive monthly double-digit growth in exports during 2026–27," it said, quoting industry sources.

 

The USDA arm has forecast cotton exports from India at 1.2 million bales in 2026-27, about 20% lower on year. "The decline is driven by a reduced exportable surplus due to strong domestic procurement, higher domestic consumption, and an increased focus on exporting value-added products." Continued depreciation of the rupee could create opportunities for increased exports of cotton and cotton products. However, the government remains concerned about inflation amid ongoing geopolitical tensions, as rising crude oil prices are expected to push up freight and insurance costs, it noted. "Although supplies may not be directly disrupted, shipping companies are likely to charge higher war-risk premiums, further raising import costs."

 

Imports are seen 25% lower on year at 3 million bales. "With the reinstatement of the 11% raw cotton import duty on long staple variety in January 2026, the government aims to protect domestic producers and stabilize local prices. Combined with the weakening rupee, higher freight and insurance costs, and slowed vessel movements, the policy has further constrained raw cotton imports, resulting in higher input costs for mills and limited access to cheaper foreign cotton," it said.

 

Textile exporters have urged the government to extend the duty-free import period to address the need for sourcing high-quality fibre. Nevertheless, mills are expected to continue relying on imports to supplement insufficient domestic supplies of machine-picked, contamination-free fibre by utilising the duty-free provisions under the advance license scheme. In 2025-26, Australia, Brazil, and the US were the top three cotton suppliers to India.  End

 

Reported by Abhijit Doshi

Edited by Ashish Shirke

 

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