Cotton Industry Concerned Over Sharp MSP Hike

21-Jul-2025 08:37 PM

Ahmedabad. The Central Government has made a strong increase of Rs 589 per quintal in the minimum support price of various categories of cotton for the marketing season 2025-26.

Under this, the minimum support price (MSP) of medium fiber category has been increased from Rs 7121 per quintal to Rs 7710 per quintal and the MSP of long fiber varieties has been increased from Rs 7521 per quintal to Rs 8110 per quintal.

For the last three-four years, there has been a steep increase in the MSP of cotton, which is adversely affecting the competitive ability of the domestic textile industry.

The purpose of the increase in MSP is to provide support to domestic farmers and ensure increase in production, which is a good thing in principle, but industry critics say that the government should also keep in mind its practical aspect.

If the textile industry purchases cotton at a higher price, the cost of its products will increase significantly and this will affect the domestic business and export business of textile products and cotton yarn and fabrics. There are already many challenges in the global market.

Industry analysts have suggested the government to focus on increasing the productivity of cotton instead of focusing only on increasing the MSP.

This will help in increasing the income of farmers and will also provide relief to the industry. India's share in the total cotton area in the world is 37 percent, but India's contribution in its global production is just 23 percent. Brazil,

China and America are far away, the average yield rate of cotton in India is much lower than Pakistan and Bangladesh. There is a dire need to increase the expected rate.

If the average yield rate increases, India can become the world's leading producer and exporter of cotton. According to industry analysts, the government should abolish the import duty imposed on cotton as soon as possible.