Cotton cultivation to rise 3% to 11.5 mn hectare in MY26-27: FAS Mumbai

The Foreign Agricultural Service (FAS) Mumbai projects, India’s cotton cultivation will rise 3 per cent to 11.5 million hectare for MY26-27, signaling a strong recovery for the upstream textile value chain. Coupled with a forecasted production of 25.2 million 480-lb bales, this rise marks a turning point as domestic mills transition from raw fiber exports to high-margin apparel manufacturing. While raw cotton and yarn exports are expected to reduce, the industry is banking on FTAs to prioritize finished garment exports. This realignment is supported by a projected 3 per cent yield increase to 477 kg per hectare, contingent on a stable monsoon following previous volatility.

Stakeholders say, this rise in domestic consumption is being led by the ‘Advance License Scheme,’ allowing mills to import duty-free long-staple fiber essential for premium apparel. A representative from a leading textile export house noted, the industry is no longer satisfied with being a global raw material supplier; instead, the capital is being deployed into high-speed spinning and weaving technologies to meet the stringent quality demands of European and North American retailers. This shift underscores a broader sectoral movement toward value-added manufacturing, ensuring long-term fiscal resilience against global commodity price fluctuations.

FAS Mumbai facilitates trade and provides market intelligence for India's agricultural and textile sectors. It monitors fiber production, yarn exports, and apparel trends across major domestic hubs. The agency’s 2026-27 outlook suggests a production recovery riding on yield improvements, supporting India’s goal of reaching a $350 billion textile market by 2030.