India’s cotton production is projected to decline by around 14 per cent to 280 lakh bales of 170 kg each during the 2026-27 cotton season, which commenced in October, compared with 325.69 lakh bales in the previous season, according to the first estimates released by the Cotton Association of India (CAI).
The decline is attributed to a reduction in cotton cultivation area and drought conditions in key cotton-producing States, which have affected crop prospects.
According to the first estimate and balance sheet prepared by the CAI Crop Committee, total cotton supply for the 2026-27 season is projected at 417.88 lakh bales. This includes opening stocks of 72.88 lakh bales and estimated imports of 65 lakh bales.
The CAI has pegged cotton imports at 65 lakh bales, lower than the 71.6 lakh bales recorded in the previous season. The estimate comes amid concerns over domestic crop availability following the production shortfall.
Meanwhile, the Central Government has recently extended the exemption from import duty on cotton until the end of December, a move expected to support domestic textile manufacturers by facilitating imports amid tighter domestic supplies.