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India's cotton imports are expected to rise in the 2024-25 crop year due to lower carry-forward stocks and reduced sowing acreage, with imports potentially reaching 35 lakh bales. The USDA has projected a 7% drop in India’s cotton output, leading traders to secure shipments for November-March delivery. Global prices, such as Brazilian and Australian cotton, are influencing import decisions, with landed costs ranging between Rs.63,000-Rs.69,000 per candy. Domestic cotton prices have also dropped, with spot rates for 28 mm cotton at Rs.56,700 per candy. Delays in arrivals due to rain in key states are contributing to market fluctuations, with prices expected to stabilize as harvests progress.

Key Highlights

* Cotton imports may touch 35 lakh bales due to lower stocks.

* Sowing down by 12-13 lakh hectares, crop delays expected.

* Import contracts for November-March delivery surge.

* Global cotton prices influence import decisions.

*Arrivals delayed in key states due to recent rains.

India’s cotton imports are expected to rise during the 2024-25 crop year due to a combination of reduced carry-forward stocks and a decline in sowing acreage. According to Atul Ganatra, President of the Cotton Association of India (CAI), imports may reach 35 lakh bales this season, driven by lower production forecasts. The USDA projects India's 2024-25 cotton output at 24 million bales, down 7% from the previous year due to a reduction in harvest areas.

Cotton prices have also reacted to these developments. The landed cost of Brazilian cotton with a 28 mm staple length for December delivery, after customs duty, is Rs.64,880 per candy. Similarly, Australian cotton with a 29 mm staple length is priced at Rs.69,120, and West African cotton at Rs.63,480 for April-May 2025 delivery. On October 4, domestic spot rates for 28 mm cotton stood at Rs.56,700 per candy, showing a drop of Rs.400 from previous days, while 29 mm cotton was priced at Rs.58,000.

Further, the trade has already contracted 7-10 lakh bales for November-March shipments, capitalizing on earlier lower global prices. Initial arrivals of raw cotton across states like Karnataka and Telangana indicate prices ranging from Rs.7,000-7,700 per quintal, although moisture content remains high, slowing down buying.

Finally

India's cotton imports are set to rise amid lower domestic stocks and delayed arrivals, with prices likely to adjust once the new crop hits the market.

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