India: Cotton and Products Update

FAS Mumbai (Post) forecasts marketing year (MY) 2021/2022 cotton production at 28 million 480 lb. bales on an area of 12.4 million hectares. Rains in early October delayed the harvest, but the pace of arrivals is picking up, which is expected to lower prices. Post estimates consumption at 26 million 480 lb. bales driven by robust export demand for cotton yarn and textiles. Exports continue to remain strong but rising freight costs and delays remain a challenge. Mills are facing sourcing issues due to rising domestic prices and higher tariffs on imported cotton.