India's Cotton Sector Faces Declining Production and New Interventions Amid Exemption on Import Duties and Launch of Mission Kapas Kanti

Cotton production during the recent cotton seasons has ranged to 290.91 lakh bales (Provisional) in 2025-26 from 352.48 lakh bales in 2020-21. The variation in production is primarily attributable to changes in cotton acreage, as some farmers have diversified to other remunerative crops. Cotton productivity remained broadly stable in the range of 428-451 kg/hectare during this period.

Cotton prices have reflected prevailing domestic and international market conditions. During the recent period, international cotton prices increased by about 19%, while domestic cotton prices (S-6 variety) increased by about 18%. To augment domestic availability, imports of raw cotton and cotton yarn are undertaken whenever required.

The overall cotton availability in the country including imports, meets the requirements of the domestic textile industry. The estimated production, carry-over stocks and imports meet the projected consumption and the cotton situation is continuously monitored.

The Government has taken timely measures to support the textile industry, including exemption of the 11% import duty on cotton imports from 01.06.2026 to 31.10.2026 to facilitate adequate availability of raw cotton at competitive prices. The Government has also continued the exemption from import duty on Extra Long Staple (ELS) cotton (ITC HS Code 52010025), effective from 20.02.2024, to facilitate the availability of quality cotton for the textile industry. Further, the Government has approved the five-year Mission for Cotton Productivity (Kapas Kanti) (2026'27 to 2030'31), with an outlay of Rs 5,659.22 crore to increase productivity & improve the quality of the cotton.

Powered by Capital Market - Live News