Not carded or combed cotton market in India

Earlier Report Observations

The market for not carded or combed cotton in India grew substantially from 19.4 million tonnes in 2018 to 23.4 million tonnes in 2019. This expansion was fueled by government interventions, specifically the Amended Technology Upgradation Fund Scheme (ATUFS) providing incentives to spinning millers and Minimum Support Prices (MSP) ensuring stable returns for cotton farmers.

Market volume then gradually contracted, reaching 20.7 million tonnes by 2022. During this period, the industry grappled with emerging challenges including volatile cotton prices, diminishing demand, and increased competition from imported fabrics. Continued MSP support provided a floor but could not fully offset these headwinds.

A recovery to 21.8 million tonnes occurred in 2023 amid efforts to stabilize domestic prices. In 2024, authorities introduced significant measures such as the Production Linked Incentive (PLI) Scheme for Textiles, the Kasturi Cotton branding initiative, and temporary import duty exemptions to address supply gaps and boost the sector's competitiveness.

Production not carded or combed cotton in India

In kind, 2017-2020, K t

From 2017 to 2020, India maintained its position as the world's second-largest producer of not carded or combed cotton by volume.

Top producers of not carded or combed cotton, 2017-2020

World map of production of not carded or combed cotton, 2017-2020

India's production of not carded or combed cotton grew for the second year in a row. In 2020, the country produced 23 862 K t, marking a 2.3% increase compared to the previous year. Over the period from 2017 to 2020, production rose by 3.9%, which translates to an average annual growth rate of 1.3%. The lowest production volume was recorded in 2018 at 20 234 K t, representing the largest decline of 11.9% that year. In contrast, 2019 saw the most significant increase, with production jumping by 15.3%.

Annual dynamics of production in India in kind, 2017-2020, K t

In value, 2017-2020, M $ US

In 2020, the value of not carded or combed cotton output in India was 35 809 M $ US, down 12.1% year-over-year. From 2017 to 2020, production value decreased by 12.4%, averaging an annual decline of 4.3%. The only notable increase occurred in 2019, with a modest rise of 1.6%.

Annual dynamics of production in India in value, 2017-2020, M $ US

Exports not carded or combed cotton from India

Exports in kind, K t

India's exports of not carded or combed cotton reached 965 K t in 2020, a substantial increase of 56.7% from the previous year. Between 2017 and 2020, exports grew by 2.7%, equivalent to an annualized rate of 0.9%. The lowest export volume was in 2019 at 616 K t, which saw the largest decline of 44.5%. Exports peaked in 2018 at 1 110 K t.

Annual dynamics of product's exports from India in kind, 2017-2020, K t

From 2017 to 2020, Bangladesh, China, and Vietnam were the top destinations for India's not carded or combed cotton exports by volume. Bangladesh accounted for 42.0% of exports, China for 19.9%, and Vietnam for 13.7%, together making up 75.6% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from India in kind, 2017-2020

Exports in value, M $ US

The export market for not carded or combed cotton showed considerable volatility during this period. In 2020, India exported 1 449 M $ US worth of not carded or combed cotton, a 34.7% increase year-over-year. The lowest value was recorded in 2019 at 1 075 M $ US, which experienced the largest decline of 51.1%. Exports peaked in 2018 at 2 199 M $ US, making the difference between the high in 2018 and the low in 2019 a factor of two.

Annual dynamics of product's exports from India in value, 2017-2020, M $ US

Between 2017 and 2020, Bangladesh, China, and Vietnam were the leading buyers of not carded or combed cotton from India in value terms. Bangladesh represented 43.2% of exports, China 18.8%, and Vietnam 13.2%, collectively accounting for 75.2% of total export value.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from India in value, 2017-2020

Imports not carded or combed cotton to India

Imports in kind, K t

India's imports of not carded or combed cotton were highly volatile from 2017 to 2020. In 2020, imports totaled 174 K t, a sharp decline of 74.6% compared to 2019. The highest import volume was in 2019 at 687 K t, which also saw the largest increase of 154.3%. The difference between the peak in 2019 and the low in 2020 was nearly fourfold.

Annual dynamics of product's imports to India in kind, 2017-2020, K t

From 2017 to 2020, the United States, Australia, and Egypt were the main sources of not carded or combed cotton imports to India by volume, together accounting for 61.6% of total imports.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to India in kind, 2017-2020

Imports in value, M $ US

The import market for not carded or combed cotton exhibited significant volatility during these years. In 2020, imports amounted to 345 M $ US, a dramatic drop of 73.9% year-over-year. The highest value was recorded in 2019 at 1 321 M $ US, which also experienced the largest increase of 112.5%. The difference between the peak in 2019 and the low in 2020 was nearly fourfold.

Annual dynamics of product's imports to India in value, 2017-2020, M $ US

Over the period from 2017 to 2020, the United States, Egypt, and Australia were the primary suppliers of not carded or combed cotton to India in value terms. The United States accounted for 49.2% of imports, Egypt for 8.8%, and Australia for 7.3%, together making up 65.4% of total import value.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to India in value, 2017-2020