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US Cotton Jumps 40%; Cotton Association Urges Removal of 11% Import Duty

US Cotton Surges 40%! Vinay Kotak Urges: "Remove the 11% Duty, or Exports Face a Major Threat"In an exclusive interview with CNBC Awaaz, Vinay Kotak, President of the Cotton Association of India, stated that US ICE cotton futures have witnessed a surge of approximately 40% over the last month and a half. According to him, the primary catalyst for this rally was the presence of a significant "short position" of nearly 10 million bales in the market. As global geopolitical tensions escalated and crude oil prices surged by roughly 40%, large-scale short covering commenced; this created immense buying pressure in the market, driving cotton futures sharply upward.He noted that prices are currently encountering some resistance at their prevailing levels. Yarn prices, too—which had previously risen from 30 CCH to reach nearly ₹325—have now retreated to around ₹310, marking a decline of approximately 4–5% in recent days. He believes that these elevated prices are leading to "demand destruction," and the market will find it difficult to sustain—or "absorb"—these price levels over the long term.However, he also added that spinning mills remain profitable at current levels, even though their profit margins have narrowed compared to earlier periods. Consequently, he does not anticipate a drastic decline in raw cotton prices.Addressing the issue of import duties, Vinay Kotak explained that India primarily imports cotton across three categories, with a particularly strong demand for Extra Long Staple (ELS) cotton and contamination-free cotton. He argued that if the 11% import duty remains in force, it will become increasingly difficult for Indian textile exporters to compete with counterparts in countries such as Bangladesh, Indonesia, China, and Vietnam—a situation that could ultimately jeopardize India's global share of textile exports.He asserted that removing this duty would provide a significant boost to the country's value-added textile exports. With this in mind, the Cotton Association of India has requested the government to waive the 11% import duty for the period spanning from April to October.They clarified that by March, approximately 90% of the farmers' cotton produce has already been sold, with only about 10% of the stock being retained by a few farmers. Consequently, removing the duty would not result in any significant loss for the farmers. Furthermore, farmers benefit from the protection of the government's Minimum Support Price (MSP), which has been hiked by approximately 7% this year.According to Vinay Kotak, neither consumers nor the textile industry are currently receiving any form of protection. Under these circumstances, waiving the 11% duty during the lean period from April to October would be in the best interest of both the industry and the consumers. He further noted that the Ministry of Textiles and the Cotton Corporation of India also concur regarding the necessity of this measure.read more :- Rupee Gains 60 Paise Against Dollar, Closes at 95.68

Why Haryana Farmers Are Shifting From Cotton to Paddy Cultivation

From cotton to paddy: Why Haryana farmers are changing course.Between 2020 and 2025, Haryana’s cropping pattern has undergone a marked transformation. The area under rice cultivation expanded from 1,525.77 hectares in 2020 to 1,867.51 hectares in 2025, while cotton acreage shrank from 719.86 hectares to just 401.05 hectares. This shift reflects farmers’ growing preference for paddy, which offers assured procurement and stable returns. In contrast, cotton has become increasingly unviable due to pest attacks, declining Bt‑cotton resistance, and mounting cultivation losses.Why is paddy the top choice?Farmers cite profitability as the main reason for choosing paddy. According to Mandeep Nathwan, president of farmers’ organisation Pagri Sambhal Jatta Kisan Sangharsh Samiti, paddy can generate an income of nearly Rs 80,000 per acre, leaving a profit of about Rs 50,000 even after deducting expenses.Farmer activist Rakesh Bains from Kurukshetra echoes this view, noting that alternative crops yield only around Rs 50,000 per acre compared to paddy’s Rs 80,000, making rice the more attractive option.Which crops have Haryana farmers switched from?Former Indian Council of Agricultural Research (ICAR) scientist Virender Lather explains that farmers have shifted from cotton, maize, jowar, pulses, and oilseeds to paddy in recent years, with cotton losing the most ground.Bt‑cotton, once resistant to pests like the pink bollworm, has lost its effectiveness as pests have adapted over time. Farmers now spend heavily on pesticides but still face yields as low as two quintals per acre, far below the eight quintals needed for profitability. This leaves them with losses of nearly Rs 15,000 per acre.What has the government done to promote crop diversification?Recognising the risks of farmers shifting to water‑intensive paddy, the Haryana government has introduced measures to promote diversification. Under the ‘Mera Pani Meri Virasat’ scheme, farmers receive Rs 8,000 per acre for cultivating less water‑consuming crops such as pulses, cotton, and maize. Chief Minister Nayab Singh Saini recently announced that Rs 157 crore has been distributed over 2.20 lakh acres under this scheme. Additional incentives include up to an 85 per cent subsidy for micro‑irrigation technologies, rainwater harvesting, and pond construction.What do experts and farmers suggest?To encourage sustainable practices within rice cultivation itself, the government offers Rs 4,000 per acre for adopting Direct Seeded Rice (DSR), which uses less water than traditional transplanting. However, experts like Virender Lather argue that the incentive is too low to change farmer behaviour and even suggest banning traditional paddy cultivation to restore Haryana’s falling water table. Farmers, meanwhile, stress that better marketing and procurement facilities for alternative crops are essential if diversification is to succeed.READ MORE :- Indian Rupee Opens 8 Paise Lower Against US Dollar at 96.28

Bhakra Canal Irrigation Water Released in Rajasthan; Cotton and Narma Sowing to Accelerate

Rajasthan: Irrigation Water from Bhakra Canal System Starts Today; Cotton and Narma Sowing Set to Gain MomentumThere is welcome news for farmers in Hanumangarh district. The supply of water for irrigation from the Bhakra canal system commenced on Thursday. The Water Resources Department has issued a new rotation schedule for the Bhakra system, announcing the weekly priority order for the period from May 21 to May 29. Under this plan, canals with a capacity of 1,200 cusecs will be operated at their full capacity, while water will be released into smaller canals in accordance with their designated capacities.According to the department, water will flow at a rate of 42 cusecs in the Ratanpura canal, 73 cusecs in Nathwana, 248 cusecs in Pratappura, 261 cusecs in Haripura, 274 cusecs in Deengarh, and 283 cusecs in Suratpura. Additionally, adequate quantities of water will be released into major canals such as Modia, Longwala, Pilibanga, Amarpura, and Rodanwali. The highest volume—2,222 cusecs—will flow through the Sangaria canal.Officials stated that each canal will be operated at full capacity for a period of eight days, after which it will be shut down. Should there be any fluctuation in water levels, necessary adjustments to the regulation schedule will be made following consultations with the concerned officials.Agricultural experts note that the current period is crucial for the sowing of Narma (American cotton) and traditional cotton varieties. Over the past few days, farmers had been facing difficulties in preparing their fields due to intense heat and a scarcity of water. With the arrival of water in the canals, sowing operations are now expected to accelerate.Farmers have expressed optimism that if the water supply remains consistent in the coming days, the production of cotton, Narma, and other Kharif crops will be bountiful. Furthermore, the increased availability of water in rural areas is expected to provide residents with much-needed relief from the scorching summer heat.read more :- Government Rejects ‘Dumping Ground’ Tag, Defends India’s Textile Recycling Ecosystem

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