New Delhi, Dec 19 (IANS) The exemption of 11 per cent import duty on cotton has led to a softening of domestic prices, currently ranging between Rs 51,500–Rs 52,500 per candy, ensuring affordability for the textiles industry while MSP-based support continues to protect farmers, the Parliament was informed on Friday.

Minister of State for Textiles Pabitra Margherita, in a written reply to a question in the Rajya Sabha, said that since the duty exemption, international prices of equivalent S-6 cotton declined from about 79.15 US cents per pound prior to August 19, 2025, to around 73.95 US cents per pound in December 2025, indicating a downward global trend.

Domestic cotton prices have softened correspondingly from about Rs 57,000 per candy to around Rs 52,500 per candy, broadly in line with international price movements. Domestic prices are influenced by global and domestic demand-supply conditions, exchange rate and quality considerations, while cotton imports constituted about 13.93 per cent of total domestic consumption during the 2024–25 season, he added.

Margherita said that the government supports cotton farmers through the Minimum Support Price (MSP) mechanism, which provides a minimum of 50 per cent return over the cost of production. For the 2025–26 season, MSP has been fixed at Rs 7,710 per quintal for medium staple and Rs 8,110 per quintal for long staple cotton, an increase of Rs 589 per quintal over 2024–25. To prevent distress sales, the Cotton Corporation of India (CCI) has procured about 31.19 lakh bales worth Rs 13,492 crore under MSP operations as on December 11, 2025, through 570 procurement centres across 149 districts in 11 states.

The minister said that the cotton imports from the USA have increased to meet the quality and supply requirements of the domestic textile industry, which consumes about 94 per cent of India’s cotton. During August–September 2025, including the period after the temporary exemption of the 11 per cent import duty, imports from the US aligned with industry needs. Overall, cotton imports in India rose from 15.20 lakh bales in 2023-24 to 41.40 lakh bales in 2024-25, helping bridge the demand–supply gap.

These imports ensure the availability of specialised cotton varieties and support export-oriented production, thereby enhancing the global competitiveness of India’s textile sector, the minister pointed out.

The CCI procures cotton under MSP to ensure remunerative prices for farmers. MSP operations continue to safeguard farmers against price volatility and ensure fair returns, he added.

–IANS

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