India’s cotton imports projected to reach record 60 lakh bales in 2025-26
The Cotton Association of India has raised its import outlook from 47 lakh to 60 lakh bales for the season ending September 2026, as textile mills tap the government’s temporary 11% import-duty exemption.
What happened
Cotton Association of India · India’s cotton imports are projected to reach a record 60 lakh bales in 2025-26, up from CAI’s earlier 47 lakh-bale estimate, as
Key facts
- 60 lakh bales projected cotton imports
- 47 lakh bales previous import estimate
- 11% temporary import-duty exemption
- 2025-26 season ending September
Why this matters
The supply gap strengthens the strategic case for partnerships or investments in cotton sourcing, spinning, and import-logistics capabilities with reliable global access.
What to watch
- Government decision on extending, narrowing, or ending the temporary 11% cotton import-duty exemption.
- Monthly cotton import arrivals versus the revised 60 lakh-bale projection.
- Domestic Shankar-6 cotton, yarn, and fabric price spreads versus landed imported cotton.
- USD/INR movement and freight rates, which determine whether duty savings reach mills.
- Cotton Corporation of India procurement actions and farmer-industry lobbying for import restrictions.
- Apparel export order trends, particularly from US and European buyers, that could convert cheaper cotton into higher mill utilization.
- Lock in staggered cotton, yarn, and fabric contracts before the duty-exemption window changes.
- Use lower input-cost visibility to protect gross margin rather than immediately passing all savings into deeper discounts.
- Diversify sourcing across domestic and imported cotton to reduce exposure to a sudden duty reinstatement or rupee depreciation.
- Track supplier pass-through: mills may retain part of the duty benefit unless brands renegotiate yarn and fabric pricing.
- Prepare value-tier replenishment and export-order capacity plans if fabric availability improves materially.