Gujarat's Textile Industry Concerned Over Cotton MSP Hike
21-Jul-2025 09:13 AM
Gujarat's Textile Industry Concerned Over Cotton MSP Hike
★ The central government has raised the minimum support price (MSP) of cotton to Rs. 7,710 per quintal for medium staple and Rs. 8,810 per quintal for long staple varieties.
★ While this move is expected to benefit farmers, Gujarat’s textile industry is concerned about rising raw material costs, which could weaken India's global competitiveness.
★ According to the Gujarat Spinners Association, India holds 37% of the global cotton cultivation area but contributes only 23% to global cotton production.
★ Indian cotton is currently among the most expensive in international markets, prompting global buyers to turn to other sourcing countries.
★ Industry stakeholders are demanding that alongside the MSP hike:
★ Cotton productivity must be increased
★ Import duties should be relaxed
★ Logistics costs should be reduced
★ A balance should be maintained between cotton prices and affordability to protect both farmers and manufacturers
★ Adding to the concern, cotton sowing in India has lagged behind last year’s pace. Weaker sowing may lead to lower output, pushing cotton prices higher in the coming months.