India: Cotton and Products Annual

FAS Mumbai forecasts marketing year (MY) 2026/27 India cotton area at 11.5 million hectares, a three percent increase from the previous year. Farmers anticipate higher fiber demand following recent trade agreements. Production is forecast at 25.2 million 480 lb. bales, a seven percent increase from the previous year and a three percent yield increase (to 477 kilograms per hectare), due to recovery from last year's untimely heavy rains and expectations of a normal monsoon. Mill use is expected to increase with rising textile and apparel exports. The higher fiber demand will likely be met through imports, with mills continuing to access duty-free cotton under the advance license scheme. As a result, raw cotton and cotton yarn exports are expected to decline, while the focus shifts toward higher-margin, value-added products.