Indian textile mills diversify sourcing; increase cotton imports from Brazil

Indian textile mills have made a decisive shift in their global sourcing strategy, with cotton imports from Brazil increasing tenfold over the 2024-25 and 2025-26 cycles. This reorientation comes as domestic spinners capitalize on a unique window of low global prices and a record Brazilian harvest, which has effectively displaced Australia as a primary supplier. The Cotton Association of India (CAI) data indicates, total imports for the 2025-26 season are projected to be 50 lakh bales, a 22 per cent increase over previous year. This is being led largely by a temporary 11 per cent import duty exemption and a domestic shortfall in Extra Long Staple (ELS) fiber.

The move is not merely a cost-saving measure but a pursuit of ‘contamination-free’ fiber. The consistency and traceability of Brazilian lint are becoming non-negotiable for mills targeting high-end European garment contracts, explain experts. While domestic production is estimated to stabilize at 317 lakh bales, the industry is increasingly using imported fiber as a benchmark for quality. This influx has triggered a complex domestic dynamic, where raw kapas prices have dipped below the Minimum Support Price (MSP) of Rs 7,710 per quintal, prompting the Cotton Corporation of India to activate over 570 procurement centers to protect local farmer interests.