India: Cotton and Products Update - June 2024

FAS Mumbai forecasts marketing year (MY) 2024/25 India cotton production at 25.4 million 480 lb. bales on 12 million hectares area planted, a three percent decrease in area from the previous forecast. Planting is underway and farmers have shifted cotton acreage to higher return crops such as paddy, pulses, and oilseeds. The government has announced a 7-8 percent increase in the minimum support price (MSP) on medium and long staple cotton effective October 1 onwards. Mill consumption is forecast at 25 million 480 lb. bales, two percent higher from the previous forecast, as strong yarn and textile demand improves in major international markets. Import forecast remains unchanged at 1.2 million 480 lb. bales as industry continues to appeal for duty removal on long-staple cotton.