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CAI (Karnataka / Tamil Nadu) Analysis: Cotton Fibre Market Trends, Prices & Forecast

TexPro provides pricing information for CAI (Karnataka / Tamil Nadu), covering subproducts such as 34 mm, It offers historical pricing data for up to the last five years. It also provides an accurate price forecast for the next “9/12” months, updated twice a month. The data is collected from our verified primary and secondary data sources.

CAI (Karnataka / Tamil Nadu), 34 mm, Domestic - India (01 May 2024 - 30 Apr 2025)

Overall Trend

  • The prices of Cotton Fibre (CAI 34 mm) have been in a decreasing trend from May 2024 to April 2025 in Asia (Domestic India).

Price Trend

  • The prices of Cotton Fibre (CAI 34 mm) have decreased by 7.19% from May 2024 to April 2025 in Asia (Domestic India).
  • The average month-on-month percentage change has been -0.62% for Asia (Domestic India) during the same period.
  • The highest percentage increase of 4.96% was reported in September 2024, and the highest percentage decrease of -8.28% was reported in January 2025 for Asia (Domestic India).
  • The average price for Asia (Domestic India) in 2024 was 2.90 USD/kg, which has decreased by 10.22% to 2.60 USD/kg in 2025, declining at a CAGR of -10.22% from 2024 to 2025.

Price Range

  • The average price from May 2024 to April 2025 for Asia (Domestic India) was 2.80 USD/kg, indicating that the prices have fluctuated around this average. The range between average and minimum price is 0.24 USD/kg and that of between maximum and average price is 0.25 USD/kg, indicating a higher range above average price. The minimum and maximum prices reported for Asia (Domestic India) were 2.56 USD/kg and 3.05 USD/kg, respectively, showing a price range of 0.49 USD/kg.
  • The average price has shown a narrow fluctuation, suggesting a relatively stable market environment, although the overall trend indicates a decline.

Volatility

  • The standard deviation in Asia (Domestic India) prices was 0.16 USD/kg, indicating a low volatility in the market.
  • The prices for Asia (Domestic India) traded at a moving average premium of 3.27% and at a moving average discount of -8.98% from the moving average price during the same period. This indicates that while prices have generally been above the average, there have been significant discounts at times, reflecting market pressures and demand fluctuations.

This analysis highlights the challenges faced by the cotton market in Asia (Domestic India), particularly the declining prices and the implications for sourcing and procurement strategies in the textile industry. The observed trends suggest a need for stakeholders to adapt to changing market conditions while considering the potential for price recovery in the future.

Trend Report

The average price of CAI (Karnataka / Tamil Nadu) has increased by 0.85% in the month of April 2025 as compared to March 2025. The price of CAI (Karnataka / Tamil Nadu) has been below its last six months average price by -5.11%. The price of CAI (Karnataka / Tamil Nadu) has reduced by a CAGR of -0.67% in last one year. The price of CAI (Karnataka / Tamil Nadu) in the month of April 2025 has decreased by -6.21% as compared to the same month last year.

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CAI (Karnataka / Tamil Nadu) – Product Overview & Market Relevance

The Cotton Association of India (CAI) benchmark for cotton sourced from the southern Indian states of Karnataka and Tamil Nadu is a crucial indicator of regional activity in Southern India for cotton. This variety is typically of the 34 mm length and is reputed for its fine quality, strength and spinnability.

The climate is suitable for producing cotton in South India and thus the region is a major part of the Indian textile industry. This cotton is reputed for being high-quality and is thus preferred by a considerable number of textile manufacturers. The CAI pricing framework is useful for local buyers, mills, and traders as it provides clarity regarding domestic cotton production and pricing.

Government policies, weather conditions, labor issues, and interstate competition are some of the factors that affect the cotton market in these states. Many cotton growers and suppliers under these regions have also aligned with programs like Better Cotton Initiative (BCI), to be equipped to deal with the Indian and global cotton market.

TexPro comprehensively analyses pricing trends, provides historical costs, and forecasts the price of CAI 34 mm cotton. By analyzing year-on-year performance and the current market situation, the tool helps businesses to improve their sourcing strategies regarding the material.

With price volatility remaining historically low, both manufacturers and retailers have been partial to 34 mm cotton produced in these states. This consistency in pricing along with the material’s softness and durability makes it a popular choice among Indian textile manufacturers.