News Capsule: Excess rainfall and Cyclone Montha cause a 2% drop in India’s cotton output: CAI
12-Nov-2025 09:50 AM
News Capsule: Excess rainfall and Cyclone Montha cause a 2% drop in India’s cotton output: CAI
★ India’s cotton production for 2025-26 is estimated to decline by about 2% to 305 lakh bales (of 170 kg each) compared to 312 lakh bales last year. The fall is attributed to reduced acreage, heavy rains, and crop losses due to Cyclone Montha.
★ With import duty exemption valid till the end of 2025, textile mills have entered into large import contracts to take advantage of the duty-free window.
★ Cotton acreage for the 2025-26 season has declined by about 2.6% to 110 lakh hectares. Initially, production was expected to reach 330–340 lakh bales, but excessive rainfall during September–October and cyclone-related damage lowered the output.
★ State-wise, the crop has improved by about 2 lakh bales in North India, while production has declined in Gujarat, Maharashtra, and Telangana. Telangana’s output is projected to fall from 48.75 lakh bales last year to 43 lakh bales this season.
★ Cotton imports are expected to touch a record 45 lakh bales this season, compared with 41 lakh bales last year. Imports during October–December alone are projected at 30 lakh bales, three times higher than the same period last year.
★ Total cotton supply by the end of the 2025-26 season (September 30, 2026) is estimated at 410.59 lakh bales, including 60.69 lakh bales of opening stock, 305 lakh bales of domestic output, and 45 lakh bales of imports.
★ Domestic consumption is estimated at 300 lakh bales, while exports are expected to fall slightly to 17 lakh bales from 18 lakh bales last year.
★ Market arrivals have been picking up across India, with daily inflows reaching about 1.3 lakh bales, expected to rise further in the coming week.
★ Currently, cotton prices are in the range of ₹6,000–7,500 per quintal, which is below the Minimum Support Price (MSP) of ₹8,100 per quintal.