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Cotton Production Trends, Imports, and Government Initiatives in India

UPSC / SSC current affairs note · Economy

AgricultureEconomy

Why in news

The Ministry of Textiles provided updated data on cotton production, area, and productivity for recent seasons, along with import trends and policy measures. The government has exempted cotton import duty for a period and launched a five-year Cotton Productivity Mission to boost yields and quality.

Background

Cotton is a key cash crop in India, supporting the textile industry. Production has fluctuated due to area shifts to more profitable crops, while productivity has remained stable. The government monitors supply-demand and intervenes with import duty exemptions to ensure raw material availability.

Key facts

in5points

  1. Cotton production ranged from 352.48 lakh bales (2020-21) to 290.91 lakh bales (2025-26 provisional).

  2. Area under cotton cultivation declined from 132.85 lakh hectares (2020-21) to 114.82 lakh hectares (2025-26).

  3. Productivity remained stable between 428-451 kg/hectare over the period.

  4. International cotton prices rose ~19%, domestic S-6 variety prices rose ~18% recently.

  5. Raw cotton imports increased 80.26% from 2024-25 to 2025-26 (5,62,224.70 tonnes to 10,13,455.16 tonnes).

  6. Cotton yarn imports increased 19.96% in the same period.

  7. Government exempted cotton import duty (11%) from 01.06.2026 to 31.10.2026.

  8. Extra Long Staple (ELS) cotton import duty exemption continued from 20.02.2024.

  9. Cabinet approved Cotton Productivity Mission (Cotton Kranti) 2026-27 to 2030-31 with outlay of ₹5,659.22 crore.

  10. Total cotton availability (production + opening stock + imports) meets domestic textile industry requirements.

Prelims pointers

  • Cotton Productivity Mission (Cotton Kranti): 2026-27 to 2030-31, outlay ₹5,659.22 crore
  • Import duty exemption on raw cotton: 01.06.2026 to 31.10.2026 (11% duty waived)
  • ELS cotton (ITC HS Code 52010025) import duty exemption from 20.02.2024
  • Cotton season: October-September
  • S-6 variety: benchmark for domestic cotton prices
  • Cotton Production and Consumption Committee meeting: 16.04.2026
  • DGCI&S, Kolkata: source of trade data
  • Ministry of Textiles

Mains angles

  • GS3 Agriculture: Discuss factors affecting cotton production and productivity in India, and the role of government schemes like Cotton Productivity Mission.
  • GS3 Economy: Analyze the impact of import duty exemptions on domestic textile industry and trade balance.
  • GS3 Agriculture: Examine the shift of farmers to alternative crops and its implications for cotton output and policy interventions.