Indian Cotton Sector Faces Greater Internal Challenges Than External

07-Apr-2025 08:35 PM

Ahmedabad: While India stands to gain from the US's new reciprocal tariff policy—thanks to lower import duties (26%) on Indian cotton textiles compared to other major suppliers like Vietnam (46%), Sri Lanka (44%), and Pakistan (30%)—domestic factors pose a bigger threat to the Indian cotton industry.

The Union Agriculture Ministry estimates cotton production for 2024–25 may fall to 294 lakh bales, the lowest since 2008–09, raising alarm in the sector. In contrast, India had produced a record 398 lakh bales in 2013–14, but production has declined by over 100 lakh bales in a decade.

The sharp drop is affecting both raw cotton and cotton product exports. While exports once hit 117 lakh bales, they are expected to fall to 17 lakh bales this season, with imports likely to rise to 30 lakh bales. This reversal underscores growing internal concerns despite external trade advantages.