Reduced cotton sowing in kharif season raises export concerns

The government's ambitious textile export target of $40 billion by FY25 is facing challenges due to lower cotton sowing in the ongoing kharif season. This decline, coupled with the ongoing crisis in Bangladesh, has dashed hopes of Indian readymade garment (RMG) shipments scooping up extra orders.

Cotton sowing has dropped to 11.24 million hectares, compared to 12.36 million hectares last year. This decline, along with outdated seed technology and challenges in cotton farming, has led to a decrease in cotton production. As a result, textiles exports are expected to be lower than in the previous fiscal year.

Reduced cotton production has implications for India's textile and apparel industry, which is a significant contributor to the country's GDP. The government's efforts to increase the sector's contribution to GDP and exports through budget allocations and initiatives may be hindered by the current challenges.

To address these issues, the government may need to focus on improving cotton production through measures such as promoting modern agricultural practices, investing in research and development, and providing support to cotton farmers. Additionally, exploring alternative sources of raw materials and diversifying export markets could help mitigate the impact of reduced cotton production on the textile and apparel industry.