Australia's Cotton Industry in 2025: Navigating Markets, Sustainability, and Change

As the Australian cotton season draws to a close in October 2025, the industry stands at a pivotal moment shaped by steady production, dynamic export trends, and a sharpened focus on sustainability. This article examines the latest market report from the Australian Cotton Shippers Association, providing a comprehensive analysis of harvest outcomes, export performance, operational challenges, and ongoing efforts to solidify Australia's reputation as a leading supplier of high-quality natural fibre.

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Production Peaks and Harvest Transition

Ginning—the process of separating cotton fibres from seeds—has nearly concluded across Australia, with most operations set to finish by the end of October. Central Queensland growers are already preparing for the 2026 season, demonstrating the sector's agility and resilience. Across other regions, strategic planning is underway to ensure continuity and adaptation to shifting market conditions. The completion of harvest and ginning marks not just the end of a season, but the beginning of renewed ambition for the year ahead.

Export Landscape: India in Focus

The global marketing of Australian cotton in 2025 has been dominated by shipments to India, spurred by a temporary duty-free import exemption that will expire at the close of December. This policy window has intensified the urgency of shipments to Indian textile mills, making India the headline destination in an otherwise subdued export landscape. Elsewhere, cautious attitudes among international buyers—influenced by economic headwinds—have seen spinners purchasing on a hand-to-mouth basis, preferring smaller, frequent purchases over longer-term commitments.

The following chart details the export volume for major destinations as of August 31, 2025:

Market Conditions: Stability and Cautious Optimism