Home / Business and Economy / War, Rupee Slide Hit Cotton Imports: CAI Cuts Projections
War, Rupee Slide Hit Cotton Imports: CAI Cuts Projections
13 Mar
Summary
- Cotton Association of India lowered import projections by 3 lakh bales.
- Rising global prices, weaker rupee, and freight costs are reasons.
- Crop projections increased slightly, while consumption estimates rose.
The Cotton Association of India (CAI) has revised its cotton import projection for the 2025-26 season downwards by 3 lakh bales to 47 lakh bales. This adjustment reflects higher international prices, a weaker Indian rupee, and elevated freight costs exacerbated by the West Asia conflict.
According to CAI President Vinay N Kotak, the increased cost of imports, coupled with relatively stable Indian cotton prices, makes domestic sourcing more economical. While imports are projected higher than last year's 41 lakh bales, the duty-free import window until December 2025 likely contributed to substantial arrivals by February end.
Prospects for Indian cotton exports may improve if the rupee continues to depreciate and global prices climb further. Countries like Bangladesh and China could become significant buyers due to their proximity. CAI has maintained its export estimate at 15 lakh bales for the season.
Furthermore, the CAI has marginally increased its crop projection by 3.5 lakh bales to 320.5 lakh bales, citing better yields in regions like Maharashtra and Karnataka. Consumption estimates have also been raised by 10 lakh bales to 315 lakh bales, leading to a revised closing stock of 98.09 lakh bales.
