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India approves $595 mn cotton mission as supply tightens

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India has approved a ₹56.59 billion ($595.28 million) Mission for Cotton Productivity at a time when the domestic textile and apparel industry is battling sharp increases in cotton and yarn prices, tight raw material availability and aggressive yarn exports by spinning mills. The industry has once again demanded removal of the 11 per cent import duty on cotton as domestic prices surge in line with the global market.

The Union Cabinet chaired by Indian Prime Minister Narendra Modi approved the Mission for Cotton Productivity for the period 2026–27 to 2030–31 to address declining growth, productivity bottlenecks and quality concerns in India’s cotton sector.

India approved a $595 million cotton productivity mission for 2026-31 to boost yields, quality and self-sufficiency amid rising cotton and yarn prices, tight domestic supply, and higher exports.
The plan focuses on better seeds, modern farming, traceability and processing, targeting higher output, improved productivity, and stronger global competitiveness.

The move comes as cotton yarn prices in key textile hubs such as Tiruppur and Mumbai have climbed sharply in recent days after cotton prices rose by ₹2,000-3,000 per candy. Traders said spinning mills were forced to raise yarn prices to offset higher raw material costs, while domestic supply remained limited because mills were increasingly prioritising exports. According to trade sources, Indian spinning mills are currently exporting nearly 60 per cent of their cotton yarn production compared to around 30 per cent a few months ago, tightening availability in the domestic market.

Against this backdrop, the government’s cotton mission aims to strengthen long-term self-sufficiency and global competitiveness in the sector under the 5F vision—Farm to Fibre to Factory to Fashion to Foreign.

The mission will focus on development of high-yielding, climate-resilient and pest-resistant cotton seeds, along with expansion of modern cultivation techniques such as High-Density Planting System (HDPS), closer spacing, integrated cotton management, and promotion of Extra Long Staple (ELS) cotton.

The government also plans to improve cotton quality through capacity building and modernisation of ginning and processing factories, alongside adoption of best processing practices. Cotton testing infrastructure across the country will be upgraded with modern and accredited facilities to support standardised quality assessment and global benchmarking.

A major component of the programme will be strengthening branding and traceability initiatives under Kasturi Cotton Bharat to position Indian cotton as a premium and sustainable fibre in global markets.

The mission additionally seeks to empower farmers through digital integration of mandis, enabling transparent price discovery, direct market access, and better price realisation through e-platforms.

The programme also includes promotion of cotton waste recycling and circular economy practices, while supporting diversification into other natural fibres such as flax, ramie, sisal, milkweed, bamboo, and banana to complement cotton production and align India’s textile sector with evolving global demand trends.

The mission will be implemented jointly by the Ministry of Agriculture and Farmers Welfare and the Ministry of Textiles. It will involve 10 institutes of the Indian Council of Agricultural Research (ICAR), one institute under the Council for Scientific and Industrial Research (CSIR), and 10 centres of the All India Coordinated Research Project (AICRP) on Cotton operating across major cotton-growing states.

Initially, 140 districts across 14 states will be covered through collaboration between state agriculture departments and ICAR. Around 2,000 ginning and processing factories will also be brought under the programme.

The government aims to increase cotton production to 498 lakh bales of 170 kg each by 2031 and raise lint productivity from 440 kg per hectare to 755 kg per hectare. Around 3.2 million farmers are expected to benefit from the initiative.

The mission also targets reducing cotton trash content to below 2 per cent under Kasturi Cotton Bharat certification and traceability initiatives, reinforcing India’s ambition to build a cleaner, premium-quality and globally competitive cotton ecosystem.

Fibre2Fashion News Desk (KUL)



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