U.S. upland cotton exports to India have surged in recent months, driven by escalating trade tensions between the U.S. and China, declining American cotton prices, and rising demand in the South Asian market, according to industry analysts.
From February to April, U.S. cotton exports to India soared to 155,260 running bales, a significant jump from 25,901 bales shipped during the same period last year, based on data from the U.S. Department of Agriculture (USDA). The week of February 20 marked the highest export volume to India in more than two-and-a-half years.
The increase follows rising tariffs from China, historically a major buyer of U.S. cotton. Beijing recently announced it would raise tariffs on U.S. goods to 125%, up from the previously declared 84%, as trade tensions with Washington escalate.
With Chinese demand falling, U.S. producers—especially from Texas and other upland cotton-growing states—are increasingly looking to India as a growing market.
India, the world’s second-largest cotton producer after China, is also one of the top cotton yarn processors and exporters globally. However, falling domestic yields prompted the Cotton Association of India (CAI) to cut its production forecast by 250,000 bales, bringing the 2024/25 estimate to 30.1 million bales—a 7.84% decline from the previous season.
India primarily imports Extra Long Staple (ELS) cotton from the U.S., which enjoys a 10% import duty exemption. In contrast, short-staple cotton faces an 11% duty. ELS cotton is prized for its superior fibre quality, higher ginning efficiency, and better lint yield, making it cost-effective for Indian buyers.
Meanwhile, ICE cotton futures have dropped nearly 5% this year, further boosting the appeal of U.S. cotton in international markets amid ongoing global trade realignments.
