India Cotton Production Declines as Government Steps Up Support for Textile Industry
By jayesh chouhan 2026-07-28 13:42:29
Downward trend in cotton production; government takes steps in the interest of the industry
India has witnessed a downward trend in cotton production in recent years, primarily due to some farmers shifting to the cultivation of other, more profitable crops.
Domestic cotton production in the country declined from 352.48 lakh bales in the 2020-21 season to 290.91 lakh bales (provisional) in 2025-26. The primary reason for this shift in production is the change in the area under cotton cultivation, as some farmers have adopted alternative, higher-profit crops. However, cotton productivity remained relatively stable during this period, hovering between 428 and 451 kilograms per hectare.
Cotton prices have been influenced by conditions in both domestic and international markets. Recently, international cotton prices rose by approximately 19 percent, while domestic prices for the S-6 cotton variety increased by about 18 percent. Raw cotton and cotton yarn are imported as needed to meet the requirements of the domestic textile industry.
The total availability of cotton in the country—including imports—is sufficient to meet the needs of the domestic textile industry. Estimated production, carry-over stocks, and imports collectively satisfy projected consumption requirements. Cotton availability and market conditions are continuously monitored to ensure timely action can be taken when necessary.
The government has implemented several measures to support the textile industry. These include exempting cotton imports from the 11 percent import duty for the period from June 1, 2026, to October 31, 2026, to ensure adequate availability of raw cotton at competitive prices. Additionally, the import duty exemption on Extra Long Staple (ELS) cotton (ITC HS Code 52010025)—effective from February 20, 2024—has been continued to facilitate the availability of high-quality cotton for the textile industry.
Furthermore, the government has approved a five-year 'Cotton Productivity Mission' (Kapas Kranti) for the period 2026-27 to 2030-31, with a budget of ₹5,659.22 crore, aimed at enhancing cotton productivity and improving quality.
