India's December quarter cotton imports jump amid duty-free import push

Mumbai: India's cotton imports rose 158% ‍year on year to a record 3.1 million bales in the ⁠December quarter after New Delhi allowed duty-free imports, boosting overseas purchases, a leading industry body said on Wednesday.

Higher imports by the world's ‌second-largest cotton ‌producer are expected to support global prices, but they could weigh on ‌local prices, which had been rising due to crop damage.

New Delhi exempted cotton imports from the 11% duty during the December quarter.


India's cotton imports in the 2025/26 marketing year, which ​began on Oct. 1, are likely ​to jump 22% from a year earlier to ‌a record ‍5 million bales, the Mumbai-based Cotton Association ‍of India (CAI) estimated.

India's imports reached a record 4.1 ‌million bales last year from the U.S., Brazil, Australia and Africa.

The industry body raised its estimate for the current season's cotton crop to 31.7 million bales, up from the previous forecast of 30.95 million bales, mainly due to higher output in the western ‍state of Maharashtra and the southern state of Telangana.

The textile industry is one of the ‍largest employers ⁠in India, directly ⁠employing over 45 million people.

The CAI forecasts cotton consumption will decline 2.9% to 30.5 million bales in 2025/26, amid weak overseas demand for Indian fabric and apparel.

The U.S., which takes nearly 29% of India's $38 billion annual textile exports, doubled tariffs on imports from India to as high as 50%, effective August.

(1 Indian bale = 170 kg)