Likelihood of Increased Cotton Imports Due to Reduced Sowing

13-Jul-2026 07:57 PM

Ahmedabad: Cotton sowing in major producing states is lagging behind last year's levels, while the stock held by the Cotton Corporation of India (CCI)—an agency under the Union Ministry of Textiles—is dwindling. Monsoon and weather conditions remain uncertain, which could impact production.

The area under cotton cultivation has shrunk in the three key producing states of North India: Rajasthan, Haryana, and Punjab. Sowing progress is also unsatisfactory in Gujarat, Maharashtra, and Madhya Pradesh. In South India, the situation is relatively better in Telangana, Andhra Pradesh, and Karnataka, whereas the scenario in Odisha will become clear only after some time.

The government has exempted cotton imports from customs duty until October 31, 2026; consequently, India is witnessing significant cotton imports from countries such as the USA, Brazil, Australia, and Egypt. This trend is likely to continue. If cotton yields decline due to reduced sowing and erratic rainfall, it could lead not only to a rise in imports but also to a drop in India's cotton exports.

Cotton prices in the international market have begun to firm up, driven by expectations of increased imports by China, India, Bangladesh, and Vietnam in the coming months. Cotton production is also projected to fall in certain major exporting nations due to a reduction in the area under cultivation.