India Cotton Production and Trade Update
The Ministry of Textiles provided a comprehensive update on cotton production, prices, and government measures in response to a parliamentary question. Cotton production has shown a declining trend from 352.48 lakh bales (170 kg each) in the 2020-21 season to 290.91 lakh bales (provisional) in the 2025-26 season. This production variation is primarily attributed to changes in cotton acreage, which decreased from 132.85 lakh hectares in 2020-21 to 114.82 lakh hectares in 2025-26, as farmers diversified to other remunerative crops. Productivity has remained relatively stable during this period, fluctuating between 428-451 kg/hectare, with the 2025-26 season recording 431 kg/hectare.
Cotton prices have reflected both domestic and international market conditions, with international prices increasing by approximately 19% and domestic prices for the S-6 variety increasing by about 18% during the recent period. To augment domestic availability, imports of raw cotton and cotton yarn are undertaken as needed. Import data shows significant increases year-over-year: raw cotton imports surged 80.26% from 562,224.70 tonnes in 2024-25 to 1,013,455.16 tonnes in 2025-26, while cotton yarn imports increased 19.96% from 7,564.61 tonnes to 9,074.13 tonnes during the same period. However, for April 2026-27, both categories showed declines compared to April 2025-26, with raw cotton imports down 15.12% and cotton yarn imports decreasing 11.12%.
The government has implemented several measures to support the textile industry, including exempting the 11% import duty on cotton imports from June 1, 2026, to October 31, 2026, to ensure adequate raw cotton availability at competitive prices. Additionally, the exemption from import duty on Extra Long Staple (ELS) cotton (ITC HS Code 52010025) continues effective from February 20, 2024, to facilitate quality cotton availability. A significant development is the approval of the five-year Mission for Cotton Productivity (Kapas Kanti) for 2026-27 to 2030-31, with an outlay of ₹5,659.22 crore aimed at increasing productivity and improving cotton quality.
The overall cotton availability in the country, including production, carry-over stocks, and imports, meets domestic textile industry requirements, and the cotton situation is continuously monitored by authorities.