India’s cotton imports increase, highlighting productivity concerns

India’s cotton imports have increased in recent months, underscoring the urgent need to boost domestic productivity. Imports reached $184.64 million in January 2025, significantly higher than $19.62 million in January 2024. The Cotton Corporation of India (CCI) has procured nearly 100 lakh bales since the new season began in October 2024, purchasing 60 per cent of arrivals in December at the minimum support price (MSP).

Farmers are struggling with low yields and production costs exceeding MSP rates. While the cost per quintal is Rs 9,000, brokers are offering just Rs 5,000-Rs 5,500. International prices are lower, prompting Indian mills to import cotton despite an 11 per cent duty. Brazilian cotton, for instance, is priced at 60-65 cents per pound, compared to 80-85 cents for Indian cotton.

With 38 per cent of global cotton acreage but only 23 per cent of output, India lags in productivity. The Union Budget’s Cotton Mission aims to address this gap. Industry leaders stress the need to boost textile exports and ensure ‘fibre security’ by improving productivity and stabilizing prices for both producers and processors. Experts suggest acreage-based MSP and increased support to enhance India’s global competitiveness.