Cotton textile industry is facing various challenges and obstacles

30-Jun-2025 04:39 PM

Mumbai. It is natural for policy makers and industry representatives to be concerned about the ongoing decline in the economic performance of the cotton sector. In recent years, the cotton industry has faced a series of challenges, and these issues continue. The sowing area for cotton has decreased, irrigation water is scarce, and the crop is frequently impacted by climate change, pests, and diseases.

Nationally, the sowing area for cotton remained stable between 125–130 lakh hectares for several years, but it has fallen to 113–114 lakh hectares in 2024. Similarly, the average yield of cotton has declined from its peak of 500 kg per hectare to 425 kg per hectare.

According to industry analysts, cotton production in India has become uncertain in terms of both quantity and quality. In the 2019–20 season, 360 lakh bales of cotton were produced, but by the 2024–25 season, this figure dropped to 294 lakh bales.

Each bale of cotton weighs 170 kg. As a result, India's cotton exports have also decreased, marking a downward trend for the last three years. In the 2024–25 marketing season, India is likely to import more cotton than it exports.

While domestic demand and consumption of cotton have risen in recent years due to increased processing capacity, the high cost of cotton products has limited export growth.

The fundamentals of cotton demand and supply are becoming increasingly complex. Once the second-largest exporter of cotton, India is now gradually slipping in global rankings, while cotton imports are rising.

To encourage farmers to grow more cotton, the government has significantly increased the minimum support price (MSP).

For the upcoming season, the MSP for long staple cotton has been raised to ₹8,110 per quintal. This is expected to add further pressure on the cotton textile industry.