Market Observation: India May Become A Major Importer Of American Cotton

India is increasing the consumption of cotton, corn, wheat and soybean products. The country's growing middle class may soon make this densely populated country the next big customer for American exports. Weather interference will make these happen faster.

India has become the world's most populous country. The country is also gaining momentum as a global economic power. India and Japan are neck and neck, becoming the fourth largest economy in the world.

India is not only an economic power, but also an emerging middle class. This means that more demand for protein may be conducive to the export of bulk commodities from the United States to India.

According to the data of the US Department of Agriculture, India ranks 12th among the US agricultural product importers in 2024, with a total value of US $2.27 billion.

Therefore, India's demand for agricultural commodities needs to be monitored in the coming years. From the perspective of sales, India needs to pay attention to the following four agricultural products:

Cotton. It is used in cottonseed oil and textile industry. Cotton is an important commodity, which needs to be monitored both in production and demand. India is the world's second largest cotton producer. According to the data of the US Department of Agriculture, India is expected to produce 25 million bales (480 pounds per bale) of cotton in 2024/25, and 25.5 million bales of cotton will be used domestically. Most notably, India can use all the cotton it grows and also rely on some imports. According to the US Department of Agriculture's supply and demand report in April 2025, India will import 2.6 million bales of cotton.

As a growing economic power, India's demand for commodities may continue to grow due to population growth and the emergence of the emerging middle class.

In addition, as India consumes most of the several commodities it produces, any severe weather fluctuation in the country may significantly reduce production, causing the country to turn to imports.