Cotton Exports from India: A Complete Guide for Exporters

India has a long history of cotton production and is one of the leading countries exporting cotton. Each segment of the exports sector on cotton, whether raw cotton or cotton yarn, or maps and finished products, is significant to the national economy of India and the global textile industry. For anyone entering the export profession, it is essential to understand the key dynamics of Indian cotton exports. This article will provide a full overview of cotton export from India, including market trends, export process, types of products, leading export countries, challenges, and opportunities for new or already established exporters.

Overview of Cotton Export from India

India is the second-largest cotton exporter in the world and also provides a sizable share of the raw textile materials that are consumed in the world. With cotton grown in several categories in Gujarat, Telangana, Karnataka, Maharashtra, and Rajasthan, India’s cotton sector should be doing well, as we just exported cotton and cotton products of over 6.4 billion (USD) in FY 2024-25, with continued demands coming from overseas.

• In FY 2024-2025, actual production of cotton is placed at 294 lakh bales (where the U.S. weight of bales is 170 kgs). 
• The Top Three Producing States are:

• Telangana (40 lakh bales)
• Maharashtra (30 lakh bales)
• Gujarat (14 lakh bales) 
• As of April 2025, India has exported products worth 471 million USD. 

The domestic demand for cotton continues to hold up because the cotton ecosystem benefits from the Government export support schemes.

Types of Cotton Exported from India

It is important to understand each product category when determining the correct markets for the international buyers’ needs.  Indian cotton exports include the categories outlined below:

• Raw Cotton (Uncombed cotton): Raw cotton is one of the main raw materials supplied to many textile industries in the world. India continues to export a reasonable amount of raw cotton. 
• Cotton Yarn: Cotton yarn exports have also continued to rise, with the most significant buyers being Bangladesh, China, Egypt, Peru, and Vietnam.
• Cotton Fabrics: The Indian cotton fabrics and made-ups also contributed a large chunk of actual export earnings, and major importer countries were Bangladesh and Sri Lanka.
• Finished Goods: Indian exporters engaged in exporting finished cotton products, including garments and home textiles. 

Major Cotton Export Destinations from India

Below are the major international markets receiving Indian cotton and cotton products. This will help exporters determine who they may be targeting and the possibilities in geographic scope. India’s top cotton export markets include:

• Bangladesh: Bangladesh is the number one cotton importer globally and is importing cotton yarn and cotton fabrics primarily. 
• Egypt: Egypt is a prominent buyer of raw cotton and textile products. 
• Sri Lanka, UAE, Peru, Vietnam: These markets are importing considerable amounts of many different cotton products. 

Bangladesh represents nearly 50% of India’s cotton yarn and fabric exports. These nearby markets are very important to Indian exporters due to past trading activity. 

Export Business Insights and Procedures

If you want to start the business of cotton export from India, you need to follow the following process:

• Registration and Licences: Get an Import Export Code (IEC), which is specific to exporters from the Directorate General of Foreign Trade (DGFT). Most exporters register with export promotion councils like TEXPROCIL, as well as apply for an IEC for better support, and also because of other certifications they require. 
• Classification of Product: Ensure you correctly determine the Harmonized System (HS) codes for the cotton apparel/souvenirs. HS code 5201 for raw cotton. HS Code 5205 to 5207 for cotton yarn. HS code 5208 for cotton fabrics, etc. Proper HS coding will ensure the cotton products you have are properly coded, and you will not have issues specifically with customs. 
• Quality and Compliance: Ensure that the cotton products are compliant with international standards. If there is any compliance certification document, it is best to show the compliance proof. There are many certificates (Quality tests for cotton, Phytosanitary certificate for raw cotton, etc).
• Documentation: Complete all documentation associated with your export, commercial invoice, packing list, bill of lading, certificate of origin, completely and as required. Always confirm requirements with customs and check with your buyer so that there is no reason for issues to arise. 
• Supply Chain Management: When you hire a professional, experienced freight forwarder, they will be able to arrange for logistics, shipping, packing, and insurance in a professional, timely, and prudent way to ensure your products reach your ultimate dealer on time.

Key Market Trends and Challenges

Here are the current marketplace dynamics that will probably serve as drivers for cotton exports, and the challenges to Indian exporters.

Market Trends

Below is a summary of the main trends and developments presently impacting India’s cotton export market. Additional awareness of market trends effectively enables exporters and companies to anticipate what to expect in relation to the demand within the market. 

• Cotton yarn exports have demonstrated a positive trajectory, growing by approximately 16% in early 2025, fueled by rising demand from key buyers like Bangladesh, Vietnam, and Peru.
• Exports for fabric and made-ups (semi-finished textile products) also experienced a growth of over 5.2%, in value terms, in 2024-25, continuing to support the potential growth of diversification of Indian cotton exports and value addition.
• Cotton prices vary from ₹65 – ₹95 per kilogram, depending on quality, national harvest circumstances, and volatile international supplies and demand prices that can vary drastically depending on ginning circumstances.

Challenges

Although the trends look good, Indian cotton exporters face challenges and barriers that will directly impact their capability to compete and succeed in the international market. Challenges include: 

• Price Fluctuations: Volatility in the international cotton market and the importance of Indian cotton as an independent source for export create problems for Indian exporters.
• Sustainability Obligations: Sustainability and quality obligations are more rigid and have associated costs for the traceability certification and eco-friendly cultivation. 
• Compelling Global Supply: India has much competition that is driven by large exports of cotton from the U.S., Brazil, and Australia, which have better prices and almost the same qualities. 
• Customs and Compliance: All cotton exporters must deal with an extensive amount of paperwork related to customs clearances, the international regulations of shipping, and the trade logistics to ensure the goods are delivered on time.
• Currency Fluctuations: The exporter assumes the risk of currency exchange rate fluctuations impacting the certainty of export earnings when entering into agreements.

Why Choose Cotton Export from India?

India’s cotton export business has a unique position amongst global exports for the abundance of raw source material, extensive product diversity, and the ability to access some of the fastest-growing markets. In addition to pricing levels, Indian cotton has distinct quality classifications and craftsmanship that is appealing to many international buyers. 

Working with a renowned brand like Credlix can assist businesses in regard to exporting products and gaining useful market sentiment, logistics, and regulatory systems, etc., that will offer further opportunity for competitive advantage in this market.

Frequently Asked Questions

1. What are the primary export procedures for cotton from India?

The primary procedures will require an export license, customs clearance, application of HS codes, and quality certification.

2. How do new exporters start exporting cotton from India?

New exporters must be registered with DGFT, understand the rules & regulations, and go through the quality norms required. They must also build up a network of buyers and think about partnering with existing exporters.

3. What key cotton products does India export?

Suppliers supply different staged products, like raw cotton, cotton yarn, cotton fabrics, and cotton products.