News Capsule: CAI Raises Cotton Production Estimate
15-Jan-2026 11:00 AM
News Capsule: CAI Raises Cotton Production Estimate
★ The Cotton Association of India (CAI) has increased its cotton production estimate for the 2025–26 season by 2.5 percent to 31.7 million bales, supported by better-than-expected output in Maharashtra and Telangana.
★ According to CAI, the cotton surplus at the end of the season is projected at 12.259 million bales, about 56 percent higher than last year.
★ Domestic consumption is expected to decline to 30.5 million bales, while imports may rise to 5 million bales due to the duty-free import window.
★ Cotton export estimates have been cut to 1.5 million bales.
★ It is important to note that production is lower compared to the previous year, and import duties on cotton have now been reintroduced.
★ Going forward, strong prospects for an uptrend in cotton prices are emerging.