FTA Expected to Boost Demand for Indian Textiles and Cotton; CAI Outlines Priorities
New Delhi: The Cotton Association of India (CAI) anticipates that India's Free Trade Agreements (FTAs) could open up new markets for Indian textile and cotton products, potentially creating additional demand opportunities for the domestic cotton and textile industries.
Addressing the CAI's 104th Annual General Meeting, President Vinay N. Kotak stated that the current cotton season has been largely positive for various stakeholders across the value chain, including farmers, ginners, traders, and spinners. He noted that new trade agreements could help enhance market access for Indian cotton and textile products internationally.
India plays a pivotal role in the global cotton economy, ranking among the world's leading cotton producers and consumers. According to Kotak, improving productivity, quality, contamination control, traceability, and sustainability is essential to boost the competitiveness of Indian cotton. Additionally, there is a need to strengthen price discovery and risk management mechanisms.
The CAI has formulated a ‘CAI Roadmap’ to address policy issues in collaboration with the government and other stakeholders. This roadmap covers matters such as the Minimum Support Price (MSP), the Reverse Charge Mechanism (RCM) on cotton procurement from farmers, and other issues relevant to the cotton value chain. The organization has also advocated for considering mechanisms like ‘Bhavantar’ (price deficiency payment schemes) as alternatives or supplements to the MSP.
The CAI is working on a Memorandum of Understanding (MoU) with Brazil’s ABRAPA to foster cooperation and knowledge sharing in areas such as productivity, sustainability, traceability, and international cotton trade. Meanwhile, work is also underway to establish the proposed ‘India Cotton Index’ as a reliable and representative benchmark for Indian cotton. The CAI's priorities include increasing cotton productivity and farmers' income, improving quality, reducing contamination, and promoting scientific and sustainable farming. The organization also aims to strengthen market intelligence and risk management.
Vinay N. Kotak has been appointed as President and Bhupendra Singh Rajpal as Vice President for the 2026-27 term.
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