India's Cotton Imports Surge to Record High Amid Global Price Support

India's cotton imports have drastically increased due to duty-free policies, reaching a record 3.1 million bales. This rise is expected to affect global and local prices. The Cotton Association of India projects further growth in imports while forecasting a decline in domestic cotton consumption amid reduced international demand.

India has witnessed a significant increase in cotton imports, with figures soaring by 158% year on year to a record 3.1 million bales for the December quarter. This surge follows new government policies allowing duty-free imports, as reported by a leading industry body on Wednesday.

As the world's second-largest cotton producer, India's higher import levels are likely to bolster global prices. However, they may apply downward pressure on domestic prices, which had previously been climbing due to crop damage. The government's exemption of the 11% duty during the December quarter facilitated this spike in imports.

The Cotton Association of India (CAI), based in Mumbai, anticipates a 22% rise in cotton imports for the 2025/26 marketing year, which commenced on October 1. The projections estimate a record 5 million bales, surpassing last year's import figure of 4.1 million bales from countries like the U.S., Brazil, Australia, and Africa.

(With inputs from agencies.)