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Export raw cotton

Ginned cotton bales from Gujarat, Maharashtra and Telangana, sold mainly to spinning mills in Bangladesh, Vietnam and China.

Free to exportHS 5201
HS code
5201
Cotton, not carded or combed: ginned lint in bales, classified in the Indian tariff by staple length (for example 28.5 mm and above).
Export policy
Free to export
Free under ITC(HS); the old requirement to register cotton export contracts was dispensed with (DGFT Notification 102(RE-2013)/2009-14, 8 Dec 2014). Confirm current status on DGFT, as cotton policy has been changed at short notice in past years.
Registrations
3
IEC, GST and those below
India’s exports, 2025-26
US$ 436 mn
to 23 countries

What is exported

India is one of the world’s largest cotton producers. Ginning factories in Gujarat, Maharashtra, Telangana, Madhya Pradesh and Punjab press lint into bales of about 170 kg. Exports depend on the crop size and the gap between Indian and international prices; in short-crop years India imports more than it exports. Bangladesh, Vietnam and China are the usual buyers.

Varieties, grades and forms

  • Long staple (28.5 mm and above)Shankar-6 type and other Gujarat and Maharashtra cottons; the bulk of exports.
  • Extra-long staple (32 mm and above)Suvin and DCH-32 types, in small volumes, for fine yarns.
  • Short and medium stapleDesi (Gossypium arboreum) cotton for coarse yarn and surgical cotton.
  • Kasturi Cotton Bharat and organic cottonBranded, traceable Indian cotton and certified organic cotton at a premium.

Where it is grown or made

  • GujaratSaurashtra (Rajkot, Amreli, Bhavnagar) and north Gujarat ginning belts.
  • MaharashtraVidarbha (Yavatmal, Akola, Amravati) and Khandesh (Jalgaon).
  • Telangana and Andhra PradeshAdilabad, Warangal and Guntur.
  • Madhya Pradesh, Punjab, Haryana and RajasthanNimar (Khargone); Bathinda, Sirsa and Sri Ganganagar.

Season

The cotton season runs from October to September; arrivals peak from November to March.

Export packing

  • Pressed bales of about 170 kg, wrapped in cotton cloth or polypropylene and bound with steel straps; about 100–110 bales in a 40-ft container (typical).
  • Each bale tagged with ginning factory, lot and bale number for HVI traceability.

Who buys abroad

  • Spinning mills in Bangladesh, Vietnam, China and Indonesia
  • International cotton merchants

The quality buyers ask for

Staple length
Typically 28–30 mm for the main export varieties; longer for ELS
Micronaire
Usually about 3.5–4.9 as contracted
Strength
Grams per tex measured by HVI, as agreed
Trash and moisture
Low trash and moisture (often around 8% or less) to contract

Certificates

  • RCMCRequiredRegistration with the export promotion council or board for your product (not needed up to ₹3 lakh FOB per consignment since 15 Sep 2026).
  • BCI / Kasturi Cotton BharatOften askedTraceable or responsibly grown cotton programmes that brands ask for.
  • Organic (NPOP / USDA NOP / EU)Often askedNeeded only if you sell as organic; certify through an accredited body.
  • ICA contract termsOften askedMost international cotton trade follows International Cotton Association bylaws and rules.

Shipping, storage and shelf life

Container load

A 40-ft container typically holds about 100–110 bales (around 17–19 tonnes).

How it travels

Sea freight from Mundra, Pipavav, Nhava Sheva and Kolkata; road and rail to Bangladesh through land ports.

Storage

Covered, dry warehouses away from fire risks; keep bales off the ground.

What goes on the pack and carton

  • Each bale marked with ginning factory, lot and bale number, and gross and tare weight; HVI data linked to bale numbers.
  • Every carton or bag: product, grade, lot or batch number, net and gross weight, exporter name and “Made in India” / “Product of India”, matching the invoice and packing list.
Where to get it tested

Cotton is tested on HVI machines at ginneries, at the Textiles Committee and CCI labs, at textile research associations (SITRA, NITRA, BTRA, ATIRA) and at NABL-accredited labs (nabl-india.org).

Benefits of exporting this product

Where to register

  • TEXPROCILRCMC from the Cotton Textiles Export Promotion Council, which covers raw cotton, cotton yarn, cotton fabrics (including knit fabrics) and cotton made-ups such as towels, bed linen and scarves.texprocil.org ↗

Quality and checks

  • HVI test results per bale or lot: staple length, micronaire, strength, uniformity, trash and colour grade.
  • Contamination (plastic, jute, hair) and moisture; buyers claim for contaminated bales.
  • Contracts usually follow International Cotton Association (ICA) rules and arbitration.
How to start small

Work with a ginning mill that has HVI-tested, Kasturi Cotton Bharat or BCI-traceable bales and sell one container to a Bangladesh mill on LC at sight, under ICA rules. Since 15 September 2026, a consignment worth up to ₹3 lakh FOB does not need an RCMC (DGFT Notification 36/2026-27). Registrations that a law requires for the product still apply.

Where new exporters go wrong

  • Contamination claims from plastic and jute strands in bales.
  • Selling forward and then facing a domestic price rise or a sudden policy change.
  • Quality on arrival differing from your HVI report; agree the testing lab and tolerance in the contract.

Documents this product needs

Schemes that apply

Sources (5)
  1. DGFT — ITC(HS) export policy search (Schedule 2)
  2. TEXPROCIL — The Cotton Textiles Export Promotion Council
  3. DGFT — Appendix 2T: Export Promotion Councils and the products under each
  4. DGFT — Appendix 4R, RoDTEP schedule for DTA exports w.e.f. 10 Oct 2024 (Notification 32/2024-25)
  5. US Customs and Border Protection — Uyghur Forced Labor Prevention Act

Trade data

Indian raw cotton exports in numbers

From the Department of Commerce’s TradeStat, country by country. US$, Indian financial years (April–March).

Exports in 2025-26
US$ 436 mn
-24.5% a year on average, 2020-21 to 2025-26
Change from 2024-25
↓ -33.9%
US$ 660 mn → US$ 436 mn
Buyer countries
23
Average export price
US$ 1.78
per kg · 2,45,648 tonnes shipped · US$ 1.94 the year before
Bangladesh: US$ 393 mnChina: US$ 18.9 mnIndonesia: US$ 11.7 mnVietnam: US$ 8.8 mnJapan: US$ 1.5 mnThailand: US$ 1.2 mnNepal: US$ 540kMauritius: US$ 340kGreece: US$ 190kItaly: US$ 130kPhilippines: US$ 90kArgentina: US$ 60kMalaysia: US$ 50kTürkiye: US$ 50kBelgium: US$ 40kUnited Kingdom: US$ 30kSri Lanka: US$ 20kAustralia: US$ 10kCanada: US$ 10kSouth Korea: US$ 10kMaldives: US$ 10kUnited Arab Emirates: US$ 10kUnited States of America: US$ 10kBangladesh: US$ 393 mnBangladeshChina: US$ 18.9 mnChinaIndonesia: US$ 11.7 mnIndonesiaVietnam: US$ 8.8 mnVietnamJapan: US$ 1.5 mnThailand: US$ 1.2 mnNepal: US$ 540kNepalMauritius: US$ 340kMauritiusGreece: US$ 190kItaly: US$ 130kPhilippines: US$ 90kArgentina: US$ 60kMalaysia: US$ 50kTürkiye: US$ 50kBelgium: US$ 40kUnited Kingdom: US$ 30kSri Lanka: US$ 20kAustralia: US$ 10kCanada: US$ 10kSouth Korea: US$ 10kMaldives: US$ 10kUnited Arab Emirates: US$ 10kUnited States of America: US$ 10kIndia
Where Indian raw cotton goes — among our 80 countries, 2025-26
2020-21: US$ 1.78 bn1.8k2020-212021-22: US$ 2.66 bn2.7k2021-222022-23: US$ 679 mn6792022-232023-24: US$ 972 mn9722023-242024-25: US$ 660 mn6602024-252025-26: US$ 436 mn4362025-26
India’s raw cotton exports, year by year · US$ million

The price cycle

India’s average export price per kg each year (total value ÷ total quantity). Highest in 2022-23, lowest in 2020-21 — a 69% swing between them. Keep this swing in mind when you quote.

2020-21: US$ 1.61 per kg1.612021-22: US$ 2.37 per kg2022-23: US$ 2.73 per kg2.732024-25: US$ 1.94 per kg2025-26: US$ 1.78 per kg1.782020-212021-222022-232023-242024-252025-26
Average export price of Indian raw cotton · US$ per kg · dotted = year in between not available

What next: a projection from the trend

The past trend carried forward — not a forecast by any authority. Sudden changes in policy, prices or demand are not in it.

2020-21: US$ 1.78 bn2020-212021-22: US$ 2.66 bn2021-222022-23: US$ 679 mn2022-232023-24: US$ 972 mn2023-242024-25: US$ 660 mn2024-252025-26: US$ 436 mn2025-262026-27: US$ 332 mn (US$ 194 mn – US$ 568 mn)3322026-272027-28: US$ 244 mn (US$ 134 mn – US$ 443 mn)2442027-28
India’s raw cotton exports and projection · hollow bars = projection, line = likely range
By 2027-28: US$ 244 mn

Likely range US$ 134 mn to US$ 443 mn.

Trend
-26.7% a year
Fit (R²)
0.73
Based on
6 years of official figures

Method: a straight line through the logarithm of yearly exports (log-linear regression); range = ±1 standard error.

Biggest buyer countries

By value in 2025-26. Change is against 2024-25.

Name2025-26Change
1BangladeshUS$ 393 mn-33.1%
2ChinaUS$ 18.9 mn+167.8%
3IndonesiaUS$ 11.7 mn-36%
4VietnamUS$ 8.8 mn-68.7%
5JapanUS$ 1.5 mn-49.7%
6ThailandUS$ 1.2 mn-31.4%
7NepalUS$ 540k-48.6%
8MauritiusUS$ 340k+61.9%
9GreeceUS$ 190k-47.2%
10ItalyUS$ 130k-58.1%
11PhilippinesUS$ 90k—
12ArgentinaUS$ 60k—

Where demand is rising and falling

Only countries that buy at least US$ 1 million or 1% of India’s exports of this product. Change from 2024-25 to 2025-26.

High demand

  1. ChinaUS$ 7 mn → US$ 18.9 mn+167.8%

Low demand

  1. United Arab EmiratesUS$ 11.6 mn → US$ 10k-99.9%
  2. VietnamUS$ 28.2 mn → US$ 8.8 mn-68.7%
  3. IndonesiaUS$ 18.3 mn → US$ 11.7 mn-36%
  4. BangladeshUS$ 587 mn → US$ 393 mn-33.1%

Which forms sell, and at what price

India’s exports by 8-digit tariff line, 2025-26. Average price = total value ÷ total quantity (TradeStat): the average of every shipment on that line, not the price of any one deal.

Tariff lineValue 2025-26ChangeQuantityAverage price
Indian cotton of staple length 28.5mm (1.4/32) and above but below 34.5mm5201 00 15 · Cotton, not carded or combedUS$ 413 mn-32.4%2,31,030 tonnesUS$ 1.79 per kgwas US$ 1.96
Cotton, other than indian, of staple length exceeding 27.0 mm but not exceeding 32.0 mm5201 00 24 · Cotton, not carded or combedUS$ 6.6 mn-71.5%3,286 tonnesUS$ 2.00 per kgwas US$ 2.22
Indian cotton of staple length 34.5mm and above (1.12/32) kgs5201 00 19 · Cotton, not carded or combedUS$ 5.6 mn+7.9%2,277 tonnesUS$ 2.46 per kgwas US$ 2.76
Indn cotton of stpl lngth ovr 24.5mm(31/32)to 28mm excludinguding bengal deshi5201 00 14 · Cotton, not carded or combedUS$ 3.4 mn-56.7%2,362 tonnesUS$ 1.46 per kgwas US$ 1.51
Cotton, other than indian, of staple length exceeding 32.0 mm5201 00 25 · Cotton, not carded or combedUS$ 3.1 mn+249.4%1,227 tonnesUS$ 2.53 per kgwas US$ 3.77
Indn cotton of stpl lngth 20.5mm(25/32) andbelow (e.g. comras etc.)excluding bengal deshi5201 00 12 · Cotton, not carded or combedUS$ 3 mn-59.8%3,277 tonnesUS$ 0.92 per kgwas US$ 1.23
Indn cotton of stpl lngth ovr 20.5mm(26/32)and below 24.5mm(30/32)excluding bengal5201 00 13 · Cotton, not carded or combedUS$ 1.5 mn-65.3%1,829 tonnesUS$ 0.83 per kgwas US$ 0.87
Cotton, not carded or combed — bengal deshi cotton5201 00 11US$ 380k-40.6%349 tonnesUS$ 1.09 per kgwas US$ 1.46
Cotton, other than indian, of staple length not exceeding 20.0 mm5201 00 21 · Cotton, not carded or combedUS$ 30k+50%12 tonnesUS$ 2.61 per kgwas US$ 1.20

The world market

Each country’s own recorded exports and imports in UN Comtrade, 2023 (the latest year nearly every country has reported).

World imports
US$ 13.2 bn
2023
India among exporters
#4
of 103 countries
India’s share of world exports
4.6%
US$ 756 mn
Left for others to win
US$ 15.7 bn
exported by other countries

Top exporters — your competitors

  1. 1USAUS$ 5.99 bn 36.5%
  2. 2BrazilUS$ 3.07 bn 18.7%
  3. 3AustraliaUS$ 2.88 bn 17.6%
  4. 4IndiaUS$ 756 mn 4.6%
  5. 5TürkiyeUS$ 587 mn 3.6%
  6. 6BeninUS$ 505 mn 3.1%
  7. 7GreeceUS$ 452 mn 2.8%
  8. 8Burkina FasoUS$ 249 mn 1.5%
  9. 9CameroonUS$ 246 mn 1.5%
  10. 10EgyptUS$ 211 mn 1.3%

Biggest buyers in the world

  1. 1ChinaUS$ 4.16 bn 31.5%
  2. 2Viet NamUS$ 2.62 bn 19.8%
  3. 3TürkiyeUS$ 1.66 bn 12.6%
  4. 4PakistanUS$ 913 mn 6.9%
  5. 5IndonesiaUS$ 815 mn 6.2%
  6. 6IndiaUS$ 593 mn 4.5%
  7. 7MalaysiaUS$ 331 mn 2.5%
  8. 8IranUS$ 292 mn 2.2%
  9. 9EgyptUS$ 282 mn 2.1%
  10. 10ThailandUS$ 246 mn 1.9%

Opportunity: what these countries buy from the world, and from India

Each country’s own recorded imports in UN Comtrade, latest year it has reported. The long light part of each bar is demand other countries are filling today.

ChinaUS$ 5.31 bnIndia 2.8% · gap US$ 5.17 bn
VietnamUS$ 3.79 bnIndia 5% · gap US$ 3.61 bn
IndonesiaUS$ 811 mnIndia 2.4% · gap US$ 792 mn
MalaysiaUS$ 301 mnIndia 0% · gap US$ 301 mn
IranUS$ 292 mnIndia 0.5% · gap US$ 291 mn
EgyptUS$ 271 mnIndia 0% · gap US$ 271 mn
South KoreaUS$ 137 mnIndia 0% · gap US$ 137 mn
JapanUS$ 64.2 mnIndia 3.3% · gap US$ 62.1 mn
ItalyUS$ 48.8 mnIndia 7.5% · gap US$ 45.1 mn
GermanyUS$ 36.5 mnIndia 0.4% · gap US$ 36.4 mn

TradeStat’s 2023-24 quantities are double-counted, so that year is left out of the price. Sources: TradeStat — Export Import Data Bank, Department of Commerce · UN Comtrade database (United Nations Statistics Division) · Figures taken 29 October 2026.

Step by step

How to export raw cotton

The USA, Brazil and Australia are the largest raw cotton exporters; India is among the biggest producers but its exports vary with the crop and domestic mill demand. Indian cotton competes on price and proximity in Bangladesh, Vietnam and China. Traceability is now a selling point, helped by the Kasturi Cotton Bharat brand and programmes such as BCI and organic. Brands sourcing for the USA and EU increasingly ask for proof of origin.

  1. 01Register with TEXPROCIL

    Take the RCMC (needed for consignments above ₹3 lakh FOB).

  2. 02Contract under ICA rules

    Agree variety, staple, micronaire, strength, shipment period and arbitration.

  3. 03Select bales

    Choose HVI-tested, contamination-free bales from reliable ginners.

  4. 04Inspect and fumigate if asked

    Arrange independent inspection and fumigation or phytosanitary papers where the buyer’s country requires them.

  5. 05Book, stuff and file the shipping bill

    Book the container, stuff it at the factory or a CFS, file the shipping bill on ICEGATE with the correct 8-digit code and the RoDTEP/RoSCTL declaration, and get the bill of lading.

  6. 06Get paid and close the file

    Send the original documents through your bank (or to the buyer if paid in advance). Once the money arrives, get the e-BRC and claim RoDTEP, RoSCTL or drawback where they apply.

Questions

Questions about exporting raw cotton

Is raw cotton export free?
Yes; the old contract-registration requirement was removed in December 2014. Policy can change at short notice, so check DGFT.
What is Kasturi Cotton Bharat?
A government-backed brand for traceable, quality-tested Indian cotton.
Why do buyers claim on contamination?
Plastic, jute and hair in bales cause defects in yarn and fabric; buyers deduct or reject.
Do I need cotton traceability?
For yarn and fabric going to the USA, buyers increasingly need proof that the cotton is not from banned origins.
What RoDTEP applies?
Raw cotton (5201) earns 2.8% of FOB, capped at ₹4.4 per kg.
Sources (5)
  1. DGFT — ITC(HS) export policy search (Schedule 2)
  2. TEXPROCIL — The Cotton Textiles Export Promotion Council
  3. DGFT — Appendix 4R, RoDTEP schedule for DTA exports w.e.f. 10 Oct 2024 (Notification 32/2024-25)
  4. US Customs and Border Protection — Uyghur Forced Labor Prevention Act
  5. Textiles Committee, Ministry of Textiles — testing laboratories