Cotton imports increase despite pressure on Indian cotton prices

Cotton farmers are sad due to the low yields.
| Photo Credit: Nagara Gopal

Increasing import of uncooked and waste cotton within the final seven months has delivered to fore the pressing want for measures to enhance cotton productiveness in India.

Also Read:Allocation for cotton in Budget ‘insufficient’, say farmers

Cotton imports had been 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 yr, it stood at $184.64 million.

Comparably, the imports had been $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 had been $19.62 million.

Meanwhile, the Cotton Corporation of India (CCI) has procured near 100 lakh bales of Indian cotton that has come into the market because the starting of the brand new season on October 1, 2024. In the height cotton arrival season in December 2024, the CCI purchased virtually 60% of the day by day arrivals on the minimal assist value (MSP). The value of the Shankar 6 number of cotton on Saturday was ₹52,500 a quintal.

Jaipal, a cotton farmer in Telangana, stated at the start of the season that farmers will not be completely satisfied as a result of yield is much less. “International cotton prices are weak and mills are able to buy from there,” he stated.

Kurbur Shanthakumar, president of Karnataka State Federation of Farmer Associations, stated the price of manufacturing per quintal is ₹9,000 and the MSP is ₹7,235. But, brokers had been shopping for within the open market at solely ₹5,000 to ₹5,500 per quintal.

The Union Budget introduced in February has a Cotton Mission aimed toward bettering productiveness.

For the Indian textile business, worldwide cotton prices are weak and with export demand wanting up for clothes and residential textiles, there’s a want for the textile business to be internationally aggressive. More than 60% of clothes exported are cotton-based. Extra Long Staple cotton might be imported obligation free and exporters can import cotton with out obligation underneath Advance Authorisation. The mills appear to have imported cotton as worldwide cotton prices had been decrease than Indian prices and the imports haven’t disturbed the native market, business sources stated.

“Brazil is an aggressive seller [in the international market]. Australia, the U.S., Africa, and Brazil were all comfortably placed in prices till a few days ago. Indian cotton prices were higher compared with these countries. The Indian textile mills took a calculated risk and imported in spite of 11% duty as Indian cotton and yarn are relatively over priced. The Indian government and textile industry should look at boosting demand so that textile exports increase and cotton prices remain in parity for the producers and processors. It is also very critical to maintain ‘fibre security’ for the mills by increasing cotton productivity and area,” Manish Daga, president of the All India Cotton Farmers Producers Organisations Association, stated.

“If Indian cotton is 80-85 cents a pound, Brazilian cotton is 60-65 cents a pound. Cotton productivity in India is about 450 kg per hectare as against 1,800-2,000 kg/ha in Brazil. Indian yarn exports should increase,” Pankaj Sharda, director at Indian Cotton Association, stated.

Cotton imports had been excessive in 2018-2019 and 2021-2022 when the textile sector had good orders. India has 38% of cotton world acreage however solely 23% of the worldwide manufacturing. The authorities ought to take a look at acreage-based MSP for the farmers and take pressing steps to increase productiveness, Southern India Mills’ Association chairman S.Ok. Sundararaman stated.