A Dialogue with CITI’s Cotton Expert
Shri T. Rajkumar,
Chairman of CITI’s Standing Committee on Cotton
The Confederation of Indian Textile Industry (CITI) serves as the sole national association representing the entire spectrum of the textile and clothing industry in India, encompassing domestic and export units, as well as regional and sectoral associations. CITI plays a crucial role in connecting millions of farmers, over 100 million workers, and 1.3 billion consumers, with a cumulative annual turnover exceeding USD 30 billion. It acts as an interface between the Government of India and the industry, providing policy inputs and supporting capacity building to enhance growth potential. Additionally, CITI is a founding member of various organizations focused on skill development and
Recently, the TVC Media Team had the opportunity to engage with Shri T. Rajkumar, Chairman of CITI’s Standing Committee on Cotton. Mr. Rajkumar, who has been re-elected as Deputy Chairman of CITI, is actively involved in multiple industrial bodies and educational institutions, emphasizing his commitment to advancing the textile industry in India.
How is climate change impacting cotton cultivation in India, and what strategies can be implemented to mitigate these effects?
Cotton crops are highly sensitive to climatic conditions. For e.g., unusually high temperatures during the growing season can cause boll shedding, while cooler-than-expected conditions may slow down maturation. Climate change such as erratic rainfall patterns affects the sowing period while changing climatic conditions are fostering the proliferation of pests like pink bollworms and other diseases. Such conditions result in reduced crop yields, affect fibre quality and escalate other input costs.
To mitigate the impact of these effects of climate change on cotton cultivation, there is a dire need to develop Climate-Resilient Varieties as also raise awareness among the cotton growing community on agronomics practices such as:
- Implement micro-irrigation systems (e.g., drip and sprinkler irrigation) to optimize water usage.
- Leverage technologies like satellite imaging, sensors, and drones to monitor soil moisture, predict pest outbreaks, and manage inputs efficiently.
- Use organic manures and biofertilizers to improve soil fertility
- Adopting climate-smart agricultural practices and providing access to tools and knowledge for resilience-building.
I am happy to share that CITI through its research arm, Cotton Development and Research Association (CDRA) is working towards raising awareness about such practices and is currently operational in the States of Maharashtra, Rajasthan and Madhya Pradesh. CITI CDRA is regularly raising awareness and handholding the farmers towards adopting such strategies, like regenerative practices which ensure better soil health, biodiversity and climate impact.
What are the key factors driving domestic cotton demand in India?
As per the data released by the Committee on Cotton Production and Consumption (COCPC), India’s cotton demand for the cotton year 2023-24 is projected to be at about 351 lakh bales which is about 7% higher than the cotton demand of the previous year. This increase in cotton demand is mainly driven by the increased needs of the textile industry, export opportunities, and evolving consumer preferences. Indian cotton industry is predominantly cotton with the cotton-based majority of exports constituting the cotton-based T&A products. Factors such as population growth, urbanization, and increasing disposable incomes are fueling the domestic market.
The growing call for sustainability is also promoting more use of natural fibres, like cotton, for their positive impact not just on the environment and circularity but also on the social benefits of livelihood generation.
Positive trends in the trade front are also supplementing demand growth, On the other hand, India’s T&A exports are recovering in the current financial year. As per the latest data, India’s exports during Oct ’24, India’s Textile exports were about 11.56% higher as compared to Oct’23 while Apparel exports registered a significant growth of 35.06% during the same time period. Moreover, In the current financial year, India’s T&A exports to the U.S., India’s major market for cotton-based T&A exports, during April
August increased by about 6% compared to the same period last year. This outpaced the growth rates of key competitors, with China at 2%, Vietnam at 0.4%, and Bangladesh recording a decline of -2.2%. India’s enhanced performance signals its growing preference among U.S. buyers and highlights its increasing share in this critical market.
All these factors are likely to drive the domestic demand for cotton in the coming months also.
What specific government policies can further boost the Indian cotton sector, particularly in terms of research and development, and farmer support?
The Ministry of Textiles has envisaged a target of achieving US$ 350 bn. textile market size (including US$ 100 bn exports) by 2030 from the present level of about US$ 165 bn. To achieve the same, India would need to increase its cotton production base from the present level of 5.5 bn kgs to about 7.5 bn kgs respectively.
However, in the absence of the appropriate seed technologies, India’s cotton production is estimated to drop to 325 lakh bales in 2023-24 (from the highest of 398 lakh bales in 2013-14) and yield is expected to drop to 436 kg lint/ha (from highest of 566 kg lint/ha), which may drop further in absence of suitable policy intervention.
The Technology Mission on Cotton announced by the Government during 2000-01 played an instrumental role in the upbringing of Indian cotton cultivation. However, the same was closed a few years back citing that necessary benefits would be made available through different schemes of the Ministry of Agriculture. While any scheme to make such a significant impact is still awaited, the Government is hopeful that Government will soon announce Technology Mission on Cotton II (TMC II) with a special focus on seed technology and the below missions:
- Advanced seed technology (high yield and international fibre quality parameters – herbicide tolerant, high-density planting, ELS cotton, drought tolerant, sucking pest tolerant, etc.)
- Global best practices for seed sowing, agronomy, harvesting, handling, ginning, and pressing
- Mission mode approach with sizeable budget allocation for the following:
- MM I: Seed and Agronomy Technology
- MM II: Technology Transfer
- MM III: Clean cotton (least trash, low short fibre content and contamination-free)
- MM IV: Branding Kasturi cotton and its textiles and clothing products
How can technology, such as precision agriculture and advanced textile machinery, be leveraged to enhance cotton production and processing efficiency?
Technology is revolutionizing the cotton industry, offering innovative solutions to optimize both production and processing efficiency. For example, precision agriculture uses data-driven techniques to maximize yield while minimizing resource use, IoT sensors and remote sensing technologies monitor soil moisture, pest infestations, and crop health in real-time, enabling farmers to make informed decisions.
Similarly, with the use of advanced machinery, we can not only enhance productivity but also the quality of cotton fibre and its downstream products. E.g., Mechanized cotton-picking machines reduce labour dependency and contamination during harvesting. On the other hand, modern ginning technologies improve fibre quality and reduce wastage.
One of the classic case studies towards the adoption of technologies in cotton cultivation is Brazil’s cotton industry which is a remarkable story of transformation from a low-productivity sector to one of the world’s most competitive and sustainable cotton producers. The use of technologies such as GPS-guided tractors, drones, and IoT sensors for efficient land use, irrigation, and pest control played a significant role in the transformation of the cotton sector of Brazil.
The Indian cotton industry may try to replicate the Brazilian model with reference to India as well.
What steps can the Indian cotton industry take to promote sustainable and ethical cotton production practices?
The Indian cotton industry can adopt a multi-faceted approach to promote sustainable and ethical cotton production practices. Some of the steps may be:
- Promote Organic and Regenerative Agriculture
- Leverage technologies like IoT sensors, drones, and GIS mapping to optimize resource use, reduce waste, and increase efficiency
- Conduct awareness campaigns and training programs to educate farmers on sustainable practices
- Fundamental Principles and Rights at Work (FPRW) to ensure fair wages, safe working environments
I am happy to share that CITI CDRA is actively working towards the promotion and capacity building of farmers to adopt sustainable farm practices and has taken a number of key initiatives for the same such as:
- CITI CDRA has started working towards innovative regenerative and sustainable farming solutions, with an aim to bridge the gap between agriculture and textile production and thus foster a harmonious relationship between the environment and industry. The project is currently going on in the state of MP. With this initiative, CITI CDRA will work towards enhancing agronomic practices, soil and environmental health, farmers’ income, and social welfare, and addressing the industry’s need for sourcing better quality regenerative cotton.
- CITI has also entered into an agreement with the ILO to create more awareness about Fundamental Principles and Rights at Work (FPRW) among the cotton-growing community, with a focus on small and marginal farmers and workers. This is the first year of the project and is currently going in the state of MP.
Apart from the above, the ground team of CITI CDRA in all its operational areas of MP, Maharashtra and Rajasthan is working actively towards the adoption of sustainable agronomics practices.
How can we address the skill gap in the cotton sector and ensure a skilled workforce to meet future demands?
Addressing the skill gap in the cotton sector and ensuring a skilled workforce requires a comprehensive strategy that spans education, training, and industry collaboration. Some of the steps towards this can be:
- Set up institutes or centres focusing on the cotton and textile industry to provide hands-on training in farming, ginning, spinning, and textile processing and focus on customized training modules
- Increased industry collaboration for various Government skilling schemes like SMARATH, PMKVY, etc.
- Educate farmers and workers on using IoT devices, drones, and GPS for modern cotton farming practices
- Organize regular workshops to update workers on the latest technologies and practices. For the same, the Government may collaborate with organizations like CDRA.
By creating a robust ecosystem of education, training, and industry collaboration, the Indian cotton sector can bridge the skill gap, empower its workforce, and prepare for future challenges, ensuring a thriving and competitive industry.
What are the key markets for Indian cotton and cotton products, and what strategies can be adopted to increase exports?
Key markets for Indian cotton fibre and yarn include Bangladesh, China, Vietnam, etc, while for the downstream products like Apparels and Made-ups, major markets include USA and EU.
If we look at the trade data then it suggests that during 2024-24, India’s cotton-based T&A stood at US$ 19.6 bn which is about 4% lower than exports of US$ 20.5 bn in 2014-15. Indian T&A industry has all the requisite potential and the same was reflected in exports of 2021-22 during which India’s cotton-based exports of T&A reached a time high of about US$ 25.5 bn. The recent geo-political advancements as well as several other factors have affected the demand for T&A products worldwide.
The Indian textile industry is optimistic about bouncing back strongly in days to come, however, to strengthen its position as a global leader in cotton and textile exports, the Indian cotton industry may focus on:
- Quality and sustainability.
- Diversification of products and markets.
- Logistical improvements to reduce costs.
- Strategic partnerships and aggressive branding to enhance market share and value realization in key and emerging markets.
What are the major challenges facing the Indian cotton industry, and what strategies can be explored to overcome these challenges?
One of the biggest challenges for the Indian cotton industry is the 11% import duty on cotton which has distorted the entire cotton value chain. As a result of the import duty, trade is adopting the import parity pricing which makes home-grown cotton internationally uncompetitive, and at present Indian cotton prices have been higher by 10 to 15 % compared to international prices, which is eroding the cost competitiveness of Indian exporters.
The industry believes that India would need at least 450 lakh cotton bales to achieve the visionary target of US$ 350 bn by 2030, including US$ 100 bn exports, as against our current production of about 325 lakh bales. Additionally, access to cotton at internationally competitive prices is critical to fulfilling export commitments, maintaining the financial viability of the capital-intensive textile sector, and sustaining long-term growth.
Cotton is a commodity product that is the main feedstock of the Indian Textile Industry, and affects the interests of around 6.5 million cotton farmers (40% of which are women) and about 40 -50 million people employed in the cotton trade and its processing. Ensuring a steady supply of competitively priced cotton is essential for both the farming community and the broader textile industry, which forms the backbone of India’s economy.
The industry has been requesting the Government to remove the import duty on cotton and listening to the industry’s plea, in February 2024, the Government provided partial relief by exempting the cotton varieties of staple length exceeding 32 mm from the scope of 11% import duty. However, the duty continues to apply to other cotton varieties.
For the sustainable development of the Indian cotton value chain, it is imperative for the Government to:
- Revoke import duty from all cotton varieties
- To improve the cost competitiveness of Indian products, the Government through the Cotton Corporation of India (CCI) may ensure enough availability of cotton at international prices (when domestic prices rule higher than international prices) and any loss to CCI in this regard may be compensated by the Government in the form of a subsidy, the way Government is providing for other commodities.
The industry is hopeful that the Government will listen to its requests favourably.
What is your vision for the future of the Indian cotton industry, and what role can CITI play in shaping this future?
India today is the world’s 2nd largest producer of cotton and is also one of the largest consumers of cotton. The future of the Indian cotton industry holds immense potential, driven by the growing global demand for sustainable and high-quality cotton products. India’s cotton sector is poised to play a pivotal role in shaping the future of the textile and apparel industry worldwide. In the long term, the Indian cotton textile industry is looking to:
- Becoming the Global Leader in Sustainable Cotton Production
- Expanding its product basket to cater more to existing markets as also expand to new markets
- Leveraging Technology for Efficiency and Competitiveness
- Empowering Cotton Farmers and Communities
The future of the Indian cotton industry is bright, with immense potential for growth, sustainability, and global leadership. CITI has a central role to play in steering the industry toward these goals by advocating for progressive policies, driving sustainability, and facilitating global market access. By embracing these responsibilities, CITI can help shape a cotton industry that is competitive, inclusive, and environmentally responsible, ensuring its prominence in the global textile and apparel market.
