India's Cotton Conundrum: Record Imports Amid Local Shortages

India’s cotton imports are set to rise by 9.8% in the 2025/26 season due to duty exemptions and reduced local output. This increased import, mainly from the U.S., Brazil, and Africa, could drive global prices. The textile sector faces challenges from decreased demand and U.S. tariffs.

India is poised to see a significant jump in cotton imports, up 9.8% for the 2025/26 season, due to favorable government policies and a sharp decline in domestic production, according to industry leaders. The Cotton Association of India has projected imports could reach as high as 4.5 million bales.

The record import level is attributed to New Delhi's decision to temporarily lift an 11% duty on cotton, combined with local crop damage from adverse weather conditions primarily affecting Maharashtra, Gujarat, Andhra Pradesh, and Telangana. These regions are pivotal, contributing over 70% of the country's output.

While India solidifies itself as a key cotton importer, this scenario has impacted its textile industry. The slowdown in U.S. demand—following heightened tariffs—has forced several manufacturers in southern India to curtail operations, a move that could affect millions employed in the sector.

(With inputs from agencies.)