New Delhi: Amidst import duty waivers and the launch of the ‘Mission Cotton Revolution,’ India’s cotton sector is navigating a phase marked by declining production and policy shifts. The government is simultaneously focusing on ensuring adequate raw cotton availability for the textile industry and advancing long-term plans to boost productivity and quality.
Data indicates that the country's cotton production fell from 352.48 lakh bales in 2020-21 to 290.91 lakh bales (provisional) in 2025-26. Shifts in the area under cotton cultivation are considered the primary reason for this decline; anticipating better returns, some farmers have switched from cotton to other, more profitable crops. However, cotton productivity remained relatively stable during this period, hovering between 428 and 451 kilograms per hectare.
Cotton prices have also fluctuated in line with domestic and international market conditions. Recently, international cotton prices rose by approximately 19%, while domestic prices for S-6 cotton saw an increase of around 18%. Raw cotton and cotton yarn are imported as needed to boost domestic availability and meet the requirements of the textile industry.
According to the government, the total availability of cotton in the country—comprising domestic production, carry-over stocks, and imports—is sufficient to meet the estimated consumption needs of the domestic textile industry. The situation regarding cotton availability, consumption, and market trends is being continuously monitored.
To provide relief to the textile industry, the government has waived the 11% import duty on cotton for the period from June 1, 2026, to October 31, 2026. Additionally, the exemption on import duty for Extra-Long Staple (ELS) cotton (ITC HS Code 52010025) continues, ensuring the availability of high-quality cotton. This exemption has been effective since February 20, 2024.
Furthermore, the government has approved a five-year ‘Mission Kapas Kranti’ with a budget of ₹5,659.22 crore, aimed at enhancing cotton productivity and improving quality. This mission will be implemented from 2026-27 to 2030-31. Its objective is to make the Indian cotton sector more competitive and sustainable by improving both productivity and quality.
