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Cotton Association of India comments on 2024-25 estimate in release
ByAinvest
Friday, Jul 11, 2025 3:48 am ET1min read
Cotton Association of India comments on 2024-25 estimate in release
The Cotton Association of India (CAI) has released its latest estimates for the 2024-25 cotton season, providing insights into the industry's performance and expectations. The association's report highlights a significant decline in production, driven by lower planted areas and adverse weather conditions. The CAI estimates that India's cotton production for the 2024-25 season will decrease by 2% to 23.5 million bales, primarily due to a reduction in planted area and yield improvements [1].The CAI's report also notes that mill use is expected to drop by 1.4% to 36.5 million bales, its lowest level in four years, as textile production shifts to other sourcing regions. This decrease in mill use is attributed to the ongoing shift in textile production strategies and the impact of global economic uncertainties [1].
The association's estimates align with the latest projections from the U.S. Department of Agriculture (USDA), which forecast global cotton ending stocks to decline to 76.8 million bales in the 2025/26 marketing year, driven by rising mill use and lower production across several key producing countries. The USDA's projections indicate a tightening global balance sheet, with lower stocks and rising mill use, despite production setbacks in several key regions [1].
The CAI's estimates also reflect the broader trends in the global cotton market, where production is projected to decrease by 2.5% (2.9 million bales) from the previous year, while mill use is expected to increase by 1% to 117.8 million bales. This upward trend in mill use is supported by lower global cotton prices, restocking needs, and anticipated economic growth in 2025 and 2026 [1].
The Cotton Association of India's estimates provide valuable insights into the challenges and opportunities facing the cotton industry in the coming season. The association's focus on the impact of weather conditions, production strategies, and global economic uncertainties underscores the complexity of the cotton market and the need for stakeholders to remain adaptable in the face of evolving dynamics.
References:
[1] https://textileinsights.in/usda-projects-lower-global-cotton-stocks-in-2025-26-as-mill-use-rises/
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