Indian cotton exports suffer due to lower yields, declining stock and escalating prices

India's cotton industry has been grappling with a series of challenges that have significantly impacted its production, exports, and overall economy. Cotton production and yields have plummeted, and the country is witnessing a sharp decline in cotton exports, reaching a 19-year low.

Atul Ganatra, President, the Cotton Association of India, highlighted that opening stock has decreased to a mere 24 lakh bales. Consequently, Indian cotton prices remained 1 percent higher than the international market throughout the year, resulting in reduced demand for Indian cotton in comparison to the cheaper alternatives from the United States, Australia, and Brazil.

He said, “There are a few reasons for the dropping in export because India was having 125 lakh bales of opening stock in 2020-21, we were having 75 lakh bales of opening stock in year 21-22 but we are having only 24 lakh bales opening stock this year. So, our opening stocks were drastically reduced this year and due to that, the entire year from October to May our Indian cotton prices were 1 percent higher than the international market that is the main reason our export has been reduced because cotton from the US, Australia, and Brazil was much cheaper than Indian cotton.”