India’s Rising Cotton Imports

  • March 9, 2025
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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India’s Rising Cotton Imports

Sub: Geo

Sec: Eco geography 

Why in News

  • India is witnessing a significant surge in cotton imports due to declining domestic yields and falling international prices. The Union Budget 2024 has introduced a Cotton Mission aimed at improving productivity and ensuring the competitiveness of the Indian textile industry.

Rising Cotton Imports:

  • India’s cotton imports have sharply increased over the past seven months, indicating a growing reliance on foreign markets.
  • January 2025: $184.64 million (compared to $19.62 million in January 2024)

Cotton:

  • Cotton is a kharif crop which requires 6 to 8 months to mature. Its time of sowing and harvesting differs in different parts of the country depending upon the climatic conditions.
  • Cotton is the crop of tropical and sub-tropical areas and requires uniformly high temperature varying between 21°C and 30°C. The growth of cotton is retarded when the temperature falls below 20°C.
  • Cotton is a drought – resistant crop ideal for arid climates and requires an average annual rainfall of 50- 100 cm.
  • It requires at least 210 frost free days in a year.
  • It occupies just 2.1 % of the world’s arable land, yet it meets 27% of the world’s textiles need. In addition to its fibre used in textiles and apparel, food products are also derived from cotton like edible oil and animal feed from the seed.
  • India is the second largest producer of cotton in the world after China.

Cotton Corporation of India:

  • Cotton Corporation of India was established in 1970 under Companies Act 1956.
  • It’s a Government of India’s corporate agency, engaged in diverse activities related to trade, procurement, and export of cotton.
  • CCI is governed by Textile Policy 1985 issued by Ministry of Textiles, Government of India.
  • CCI operates in the following states as of now – Punjab, Haryana, Rajasthan, Gujarat, Maharastra, Madhya Pradesh, Andhra Pradesh, Karnataka, Tamil Nadu and Orissa.
  • The major role of the CCI is to undertake price support operations, whenever the market prices of cotton falls below the minimum support prices (MSP).

Challenges Faced by Indian Cotton Farmers:

  • Low Productivity: India’s cotton productivity is approximately 450 kg per hectare, significantly lower than Brazil’s 1,800-2,000 kg per hectare.
  • Declining Prices and Financial Losses: Farmers report that the cost of production per quintal is ₹9,000, whereas the Minimum Support Price (MSP) is ₹7,235.
  • Weak International Prices: Global cotton prices remain low, making imports more attractive for mills compared to purchasing from domestic sources.

Government Initiatives:

  • Cotton Mission under Union Budget 2024: The mission aims to improve cotton productivity through research, better farming techniques, and high-yield varieties.
    • The mission spans five years, with an allocation of ₹600 crore.
    • Aiming to increase cotton yield from the current 450-500 kg per hectare to 1,000 kg per hectare.
    • Promoting Extra-Long Staple (ELS) Varieties: Focusing on the cultivation of ELS cotton to reduce import dependence and boost the domestic textile industry.
    • Alignment with 5F Vision: Integrating the mission with the “Farm to Fibre, Fibre to Factory, Factory to Fashion, Fashion to Foreign” framework to strengthen the entire cotton value chain.
  • Procurement by Cotton Corporation of India (CCI): The CCI has procured nearly 100 lakh bales since the new season began on October 1, 2024.
  • Extra Long Staple (ELS) cotton is now allowed duty-free imports, benefiting exporters.
  • Advance Authorisation Scheme enables duty-free cotton imports for exporters, helping the textile industry sustain its global market position.
Geography India’s Rising Cotton Imports