The Committee on Cotton Production and Consumption recently estimated cotton production this year to be nearly five lakh bales less than the previous season that ended on September 30, 2025. However, the demand is expected to be 337 lakh bales compared with 340 lakh bales last season. The industry is demanding removal of the import duty so that the micro, small and medium-scale enterprises get raw material at affordable prices.
The average cotton productivity in India is 440 kg a hectare as against 1,900 to 2,000 kg a hectare in Brazil. The Rs. 5,900 crore Cotton Mission announced by the Centre in the Union Budget is yet to take off. India needs to focus on seed quality and productivity so that cotton production does not decline. Brazil cotton is available at a lower price even with the import duty.
India imported both raw and waste cotton worth Rs. 2,069.12 Crore in October this year, which is almost twice as much as it imported last October. Though India is the world’s second-largest cotton producer after China, the textile industry has been pushing for cotton imports, largely because countries such as the United States, China, and Brazil offer cheaper cotton. The industry, spread across the country, is India’s second-largest employer after agriculture.
Farm leaders, traders, and ginning millers say this year’s decrease in prices has been caused not just by rains, but also the import of raw cotton. On August 19, the Union government exempted all customs duties on the import of raw cotton until September 30. It stated in a press release that the measure would bring relief to manufacturers and consumers. On August 28, the government further extended the import duty exemption until December 31.
“The decision, notified by the Central Board of Indirect Taxes and Customs, is expected to stabilise the input costs across the textile value chain, including yarn, fabric, garments, providing relief to manufacturers and consumers alike. This strategic intervention ensures that the textile sector remains globally competitive while safeguarding the interests of domestic cotton farmers,” the government said in a press release.
The government claimed that farmers’ interests are safeguarded through the Minimum Support Price (MSP) mechanism operated by the Cotton Corporation of India Ltd. (CCI), which ensures that farmers receive at least 50% above their cost of production.
“Imported cotton often caters to specialised industrial requirements and does not substitute domestic cotton,” the government explained in a press release. “Most imports occur during lean periods or when domestic stocks are insufficient, which minimises competition with peak domestic procurement periods. The government monitors cotton prices closely and retains the flexibility to impose safeguards as and when required.”
According to the Textiles Ministry, the provisional acreage of cotton for 2024-25 is 114.47 lakh ha. This is a decrease of about 1.2 million hectares compared to the acreage of 2023-24 (126.88 lakh ha). The government, however, expects that the yield will be similar to last season’s, of about 437 kg per ha.
The MSP announced by the government is Rs. 7,710 for a quintal of cotton. Farmers argue that they get just about Rs. 4,500-6,000 for a quintal, which is almost half of the MSP. According to the government, only 34.04% of the cotton was procured under MSP operations in last year.
There are other logistics issues that worry farmers. Many districts have no proper market or market yard under the Agricultural Produce and Livestock Market Committee (APMC). Farmers have been demanding a proper procurement system. They are not getting the input prices. From top to bottom, the APMC system has been corrupted by a few influential traders. They deny prices to farmers on flimsy technical issues.
Farm leaders argue that cultivation has come down because of stagnation in the prices of cotton in open markets. “But the input costs are increasing. Why then should a farmer cultivate cotton? They are either shifting to peanut or pulses or not sowing anything at all. The government’s decision to waive off import duties was a blow. This was done due to the pressure from U.S. President Donald Trump. Industry can now easily import cotton from the U.S., Pakistan, Brazil, and China. They are not buying local cotton, but from abroad. It will be a double blow for farmers and MSMEs.
Industries also agree that the imports from the U.S. have increased. There is a measurable increase in U.S. cotton exports to India, after the removal of import duty restrictions. The duty cut is one likely factor among others.
Most of the countries have fifth or sixth generation of BT cotton seeds. Their per acreage yield is much higher than ours. We need to increase our yield. Only then will we be able to sell at an international rate. Indian cotton is the most expensive in the market. The prices are high because of low yield. The problem has become severe in the last 5-6 years. “New seeds should be approved on an urgent basis. There is a price cap on sale of cotton seeds, as per the Cotton Seed Price (Control) Order, 2015. So, we are not getting good seeds. Farmers are ready to pay more if there are good quality seeds that give higher yield.
Farmers are shifting from BT cotton to the traditional cotton seed to reduce input costs. Farmers believe that organic farming of local varieties of cotton will help farmers resist imported cotton. It doesn’t need pesticides and needs very little water. The input cost is lower and sometimes it gives more yield than BT cotton. The harvest will take another two months compared to the hybrid varieties. Non-seasonal monsoons do not impact this variety. Traditional varieties resist pink bollworm, a major insect, as well.
BT cotton provides more yield. But it is more vulnerable to diseases, insects and fluctuations in climate. The seeds production is controlled by big private companies. There is no control on them. The new Seeds Bill draft will help these companies. The future of the cotton growers is uncertain.
