Rising Cotton Prices Heighten Concerns in Textile Industry

06-May-2026 05:34 PM

Ahmedabad. Driven by high and surging rates in the international market, cotton prices have witnessed a corresponding rise in the domestic sector as well. The government agency itself—the Cotton Corporation of India (CCI)—implemented a substantial hike of ₹2,900 per candy (356 kg), or 4 percent, in the Minimum Selling Price of its cotton stock on the very first day of the current week. On the New York Exchange (ICE), cotton prices firmed up, climbing above the 84.50 cents per pound mark.

The Central Government continues to drag its feet on the issue of making cotton imports duty-free. While the Ministry of Textiles advocates for the immediate removal of import duties on cotton, the Ministry of Agriculture remains opposed to the move. The latter argues that the CCI currently holds a stock of approximately 4.5 to 4.6 million cotton bales, in addition to the reserves held by farmers and ginning-pressing units.

Consequently, the demand and requirements of the sector can be easily met until at least August 2026. Should cotton imports be made duty-free at this juncture, it would send a negative signal to farmers, potentially dampening their enthusiasm and interest in cotton cultivation. Cotton sowing is scheduled to commence nationwide next month (June). Meanwhile, the rising cost of cotton is expected to drive up the production costs of textile products.