CAI revises 2024–25 cotton output to 301 L bales, seeks policy reforms

Fibre2Fashion

3 hours ago

The Cotton Association of India (CAI) has further raised its cotton production estimate to 301.15 lakh bales of 170 kg for the current 2024–25 season (October–September). In its April 2025 report, it had projected production at 291.35 lakh bales.
India's cotton production last year stood at 327.45 lakh bales. The region-wise analysis shows that cotton production in north India may fall to 28.80 lakh bales this season from 45.62 lakh bales. In central India, production is expected to reach 180 lakh bales, down from 202.21 lakh bales last year. However, cotton production in south India may rise to 86.50 lakh bales from 73.85 lakh bales, CAI said in a press statement.
CAI has raised its 2024â€'25 cotton production estimate to 301.15 lakh bales. Output is set to decline in the north and central regions but rise in the south. Consumption and exports are expected to fall, while imports may more than double. CAI flagged rising MSPs as a threat to competitiveness and urged reforms, including changes to CCI's sales policy and a Bhavantar-like scheme.
Cotton stock is projected to be 48.34 lakh bales at the end of the current season, compared to 30.19 lakh bales last year. The country's cotton consumption may decline to 305 lakh bales from 313 lakh bales in the previous year. Cotton exports are also expected to fall to 17 lakh bales from 28.36 lakh bales last season, while imports may rise two-and-a-half-fold to 39 lakh bales from 15.20 lakh bales.
CAI stated that the continuous increase in minimum support prices (MSP) for cotton is causing concerns. Higher MSPs not only distort market dynamics and hinder the natural price discovery process, but also raise production costs for textile mills, potentially leading to higher consumer prices and negatively impacting the global competitiveness of Indian cotton.
As this poses a threat to the survival of the entire value chain, stakeholders emphasised the need for an equitable solution that continues to provide remunerative prices to farmers without compromising the competitiveness of trade and industry.
Several suggestions were made during the meeting, including the introduction of a Bhavantar-like scheme and revisions to the Cotton Corporation of India (CCI) sales policy.
Suresh Kotak, chairman of the Textile Advisory Group and chairman of the Kotak Group of Companies , appreciated the stakeholders' concerns and acknowledged the need to revise the MSP structure and CCI sales policy. He noted the suggestions and stated that he would take them up with the government.
Fibre2Fashion News Desk (KUL)