Cotton imports increase despite pressure on Indian cotton prices

Urgent measures needed to improve cotton productivity in India as imports surge, impacting farmers and textile industry competitiveness.

Increasing import of raw and waste cotton in the last seven months has brought to fore the urgent need for measures to improve cotton productivity in India.

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Cotton imports were to the tune of $104 million in August 2024, $134.2 million in September 2024, $127.71 million in October, $170.73 million in November, and $142.89 million in December, 2024. In January this year, it stood at $184.64 million.

Comparably, the imports were $74.4 million in August 2023, $39.91 million in September 2023, $36.68 million in October 2023, $30.61 million in November 2023, and $29.47 million in December 2023. In January 2024, the imports were $19.62 million.

Meanwhile, the Cotton Corporation of India (CCI) has procured close to 100 lakh bales of Indian cotton that has come into the market since the beginning of the new season on October 1, 2024. In the peak cotton arrival season in December 2024, the CCI bought almost 60% of the daily arrivals at the minimum support price (MSP). The price of the Shankar 6 variety of cotton on Saturday was ₹52,500 a quintal.

Jaipal, a cotton farmer in Telangana, said at the beginning of the season that farmers are not happy because yield is less. “International cotton prices are weak and mills are able to buy from there,” he said.

Kurbur Shanthakumar, president of Karnataka State Federation of Farmer Associations, said the cost of production per quintal is ₹9,000 and the MSP is ₹7,235. But, brokers were buying in the open market at only ₹5,000 to ₹5,500 per quintal.