Textile Industry Concerned Over Declining Cotton Production and High Prices

Mumbai. The Indian textile industry is grappling with concerns regarding the supply of raw materials. A decline in domestic cotton production, coupled with high prices, is intensifying challenges for the sector. While the demand for and consumption of cotton are rising rapidly, supply and availability have not kept pace. Consequently, there is a need to import large quantities of cotton from abroad.

According to analysts, cotton production in the country is projected to fall below 29 million (290 lakh) bales during the 2026-27 season, while demand is expected to exceed 34 million (340 lakh) bales. This creates a significant gap of at least 5 million (50 lakh) bales between demand and supply.

To bridge this substantial gap, large-scale imports of cotton from overseas will be required. Currently, cotton imports are exempt from import duty until October 31; it is anticipated that the government may extend this exemption by two months, until December 31, 2026. Previously, an 11 percent import duty was applicable to cotton. No official decision has been announced yet regarding the extension of the duty-free import period.