MUMBAI, April 19 (Reuters) - India's cotton production in 2022/23 is set to fall to the lowest level in 14 years and below domestic consumption for the second straight year as yields dropped in producing states, a leading trade body said on Wednesday.

Lower production will reduce exports from the world's biggest producer in the current marketing year ending on Sept. 30 and support global prices . It could also lift domestic prices and weigh on margins of local textile companies.

Production could fall to 30.3 million bales, down 3.2% from the previous estimate of 31.3 million bales, Cotton Association of India (CAI) said in a statement.

Local consumption could also ease by 2.2% from year ago to 31.1 million bales, it said.

Lower production could bring down cotton stocks at the end of 2022/23 marketing year to 1.4 million bales, the lowest in more than three decades, the trade body said.

India's cotton exports in the year are expected to slide sharply to 2.5 million bales from 4.3 million bales a year ago, it said.

(1 bale= 170 kg)

Reporting by Rajendra Jadhav, Editing by Louise Heavens