India Raises Cotton Output Estimate as Duty-Free Imports Boost December Quarter Purchases

India's cotton imports surged 158% year-on-year to a record 3.1 million bales in the December quarter after the government allowed duty-free imports, boosting overseas purchases. The Cotton Association of India (CAI) raised the 2025-26 cotton crop estimate to 31.7 million bales due to higher output in Maharashtra, Telangana, and Karnataka. Imports for the season are projected at 5 million bales, while cotton consumption is expected to decline amid weak overseas demand and increased U.S. tariffs on Indian textile exports.