Brazilian Cotton Prices Hit Indian Exports Hard

The Cotton Association of India (CAI) has announced a significant decline in cotton exports for the 2024-25 season, citing the influx of cheaper Brazilian cotton and reduced domestic output as principal reasons. Export levels are expected to plummet to 15 lakh bales, a sharp decrease from 28.36 lakh bales recorded the previous season.

CAI president Atul S Ganatra highlighted that Brazilian cotton in the international market is priced 7% lower than India's production, resulting in a competitive disadvantage for Indian exports. Furthermore, domestic production has also seen a downturn, falling by over 11% from the last season, thereby necessitating an increase in imports.

The association estimates cotton imports for the current season could reach 33 lakh bales, a leap of 17.80 lakh bales from the previous year. As the industry grapples with these challenges, CAI has projected total cotton supply to reach 354.54 lakh bales for the season, combining opening stock, domestic production, and imports.

(With inputs from agencies.)