Vidarbha Industries Association (VIA) has welcomed the recently released cotton study report prepared by the Confederation of Indian Textile Industry (CITI), titled “Economic Analysis of Cotton Supply, Pricing, and Trade Policy in India”, in association with Gherzi Textile Organization and the International Cotton Advisory Committee (ICAC). The report provides a critical roadmap for addressing the current challenges in India’s cotton-textile value chain.
VIA President, Prashant Mohota said that the report highlights a sobering reality: India’s average cotton yield remains approximately 450 kg per hectare, significantly below the global average of 800 kg per hectare. While India’s cultivation costs per hectare are moderate, the lower yields result in higher unit production costs on a per-pound basis.
“Improving productivity is no longer just an agricultural goal; it is an economic imperative to ensure the viability of cotton as a strategic crop for our growers and a competitive raw material for our mills,” Mohota stated.
A central aspect of VIA’s endorsement is the report’s recommendation to withdraw the import duty on cotton. The study points out that the duty, initially imposed in 2021-22 to address a pandemic-induced surplus, has now become a hindrance at a time when domestic demand frequently exceeds production.
“Our competitors in Asia enjoy duty-free access to international cotton, placing Indian mills at a significant disadvantage,” Mohota emphasized. He echoed the report’s observation that a stable and predictable policy framework is essential for mills to plan long-term investments and maintain operational sustainability.
The report anticipates that the Cotton Corporation of India (CCI) will play an increasingly important role, with procurement expected to remain elevated due to higher Minimum Support Prices (MSP). VIA supports the report’s proposals for:
- Buffer Stocks : Establishing a buffer stock to supply approximately 100 lakh bales to local mills at international parity prices.
- Strategic Reserves: Maintaining a three-month strategic inventory to cushion against market volatility, similar to policies followed in China.
- Financial Reforms: Implementing a Cotton Price Stabilization Fund with a 5% interest subvention and extending cash credit (CC) limit tenures to 9 months to ease liquidity pressure on MSME spinning mills.
The urgency of these reforms has been further reinforced by the ongoing crisis in West Asia, which has reportedly increased fertilizer prices by nearly 40% and pushed cotton and MMF prices higher by 15–30% since February 2026.
President Mohota stated that adopting the report’s “Way Forward” — particularly the removal of import duties and alignment of domestic pricing with global trends — is essential to safeguard India’s target of achieving USD 100 billion in textile exports.
VIA has urged the Ministry of Textiles and relevant financial institutions to act swiftly on the report’s recommendations to ensure the long-term health and competitiveness of the Indian textile industry.
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