Why has the Cotton Association of India reduced its cotton import projections for 2025-26?

The CAI has reduced import projections due to firming global prices, a weakening rupee, and rising freight costs caused by the West Asia war, making imports more expensive.

What are the revised import and export estimates for Indian cotton in 2025-26?

The revised import projection is 47 lakh bales, while the export estimate remains at 15 lakh bales for the 2025-26 season.

How has the cotton crop and consumption outlook changed for the 2025-26 season?

The crop projection has been marginally raised to 320.5 lakh bales, and consumption estimates are up by 10 lakh bales to 315 lakh bales.

Home / Business and Economy / War, Rupee Slide Hit Cotton Imports: CAI Cuts Projections

War, Rupee Slide Hit Cotton Imports: CAI Cuts Projections

13 Mar

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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.

War, Rupee Slide Hit Cotton Imports: CAI Cuts Projections

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.