Government Strives to Boost Cotton Textile Industry

21-Jul-2026 05:53 PM

New Delhi. India ranks first globally in terms of cotton cultivation area and second only to China in cotton production and consumption. According to official data, cotton production in the country stood at 290.91 lakh bales during the 2025-26 season, while total consumption is expected to rise to 328 lakh bales (each bale weighing 170 kg). India contributes approximately 19 percent to the total global cotton production.

The Central Government remains committed to the betterment and advancement of the domestic cotton textile industry. The 11 percent customs duty on cotton imports has been suspended for the period from June to October 2026, providing some relief to the industry.

The Minimum Support Price (MSP) for cotton has seen a significant increase over the past three years, benefiting farmers financially. When market prices fall, the government agency—the Cotton Corporation of India (CCI)—procures large quantities of cotton from farmers at the MSP across all major producing states. Additionally, the government has launched a cotton productivity mission aimed at increasing the country's annual cotton production to 498 lakh bales by 2031. New technologies are being employed to enhance average cotton yields and improve quality, while farmers receive continuous support and encouragement to boost production.

However, due to unfavorable weather and monsoon conditions, the domestic cotton cultivation area during the current Kharif season has shrunk to 92.53 lakh hectares—a decline of 5.87 lakh hectares compared to the 98.40 lakh hectares sown during the same period last year. While cotton acreage has increased in Telangana and Andhra Pradesh, there has been a significant reduction in the cultivation area in states such as Gujarat, Maharashtra, Rajasthan, Punjab, and Haryana. If this decline in acreage persists, cotton production could fall.