The Indian textile industry is grappling with a looming cotton crisis, as lower cotton production is anticipated this year due to a decline in sowing area. Industry experts and associations are sounding alarm bells, highlighting the potential impact on domestic textile manufacturing.
Gujarat: A Microcosm of the National Trend Gujarat, a key cotton-producing state, has witnessed a significant drop in cotton cultivation. The area under cotton cultivation has decreased from 26.82 lakh hectares in the previous year to 23.71 lakh hectares this year. This decline is attributed to various factors, including pest infestations and a shift towards more profitable crops like groundnut.
Impact on Cotton Production and Textile Industry The Cotton Association of India (CAI) estimates India’s cotton production for 2024-25 to be around 302 lakh bales, a substantial decrease from the previous year’s 325 lakh bales. This reduction in cotton availability could lead to higher raw material costs, impacting the profitability of textile mills.
The textile industry, particularly the spinning sector, is heavily reliant on domestic cotton. A decline in cotton production could result in increased imports, which could further strain the industry’s finances. Additionally, it could lead to job losses and reduced export competitiveness.
Government Intervention and Policy Recommendations To mitigate the impact of the cotton crisis, industry experts are urging the government to take immediate action. They suggest introducing new high-yielding cotton seed varieties, providing adequate irrigation facilities, and implementing effective pest control measures.
Furthermore, the government should consider implementing a clear and transparent cotton procurement and selling policy for the Cotton Corporation of India (CCI). This would help ensure a stable supply of cotton to the domestic industry and protect farmers’ interests.
As the textile industry navigates these challenging times, it is crucial for policymakers and industry stakeholders to work together to address the underlying issues and ensure the sector’s long-term sustainability.
