Cotton Carryover Stocks Expected to Remain High Due to Massive Imports

12-Jun-2026 03:30 PM

Mumbai. Cotton carryover stocks are likely to remain significantly high at the end of the current marketing season due to massive imports alongside steady domestic demand and consumption. With the prevailing customs duty structure, cotton imports for the current 2025-26 marketing season (October–September) are projected to surge to a high of 60–65 lakh bales.

Rough estimates indicate a 32 percent increase in cotton imports between October 2025 and May 2026; notably, imports have been exempt from customs duty since June 1. Cotton imports will remain duty-free until October 31, 2026, whereas an 11 percent duty was previously applicable.

Consequently, India's total carryover cotton stock is projected to jump by 42 percent, exceeding 85 lakh bales by the end of the 2025-26 marketing season (September 30, 2026) or the start of the 2026-27 season (October 1, 2026).

According to the Cotton Association of India (CAI), a leading trade body, total cotton imports into the country reached 43.50 lakh bales by May 31, 2026—an increase of approximately 32 percent compared to the 33 lakh bales imported by May 31, 2025.

The Association had initially projected imports of 47 lakh bales for the entire 2025-26 season; however, following the import of 43.50 lakh bales by the end of May and the subsequent waiver of customs duty from June onwards, the Association felt it necessary to revise its forecast.

It now projects total cotton imports to rise to the 60–65 lakh bale range (with each bale weighing 170 kg). India is importing large quantities of high-quality cotton from several countries, including the US, Brazil, and Egypt.