Exports of U.S. cotton to India rise sharply due to competitive prices

17-Apr-2025 07:55 PM

New York. Exports of American upland cotton to India have surged in recent months, driven by lower U.S. prices, strong Indian demand, and global trade uncertainties.

According to the USDA, U.S. cotton shipments to India reached 1,55,260 bales between February and mid-April—up significantly from 25,901 bales during the same period last year. This upward trend is expected to continue.

Tensions between the U.S. and China have escalated, with the U.S. imposing 245% duty on some Chinese goods, and China retaliating with import duties up to 125% on U.S. products.

As a result, American cotton exports to China have nearly halted, pushing prices down and prompting U.S. exporters to seek new markets like India.

India, the world’s second-largest cotton producer and consumer, currently imposes an 11% import duty on cotton. However, a recommendation has been made to remove this duty.

If implemented, Indian imports of cheaper American cotton could rise sharply. Cotton imports in India were 15.20 lakh bales in 2023-24, but are projected to increase to 33 lakh bales in 2024-25, according to the Cotton Association of India.