Indian textile manufacturers are rejoicing as imports of Supima cotton, the premium ELS (Extra-Long Staple) variety from the U.S., surge after the government lifted import duties earlier this year. This move eliminates an 11% cost barrier, making Supima a more attractive option for creating high-end fabrics.
Demand for Supima Soars: Industry leader Marc Lewkowitz, CEO of Supima, reports a significant rise in Indian imports, exceeding one lakh bales (around 100,000) this crop year (August-July). This dramatic increase highlights India’s dependence on ELS cotton, which it imports due to domestic production shortfalls.
Price Concerns for U.S. Growers: While Indian demand is good news for U.S. Supima cotton exports, current price levels are causing concern for American Pima cotton farmers. Profits are slim to nonexistent, potentially leading to reduced cultivation in the future. Supima is working with brands and retailers to ensure stability throughout the supply chain.
Shifting Market Landscape: India’s cotton import landscape has changed in recent years. While the U.S. held a dominant position with 1.2 million bales imported in 2019, competitors like Australia, Brazil, and West African nations have captured market share. Despite a rise in Supima imports this year, Peush Narang of the Cotton Council International anticipates a dip in the overall U.S. share due to this broader market competition.
Overall, the removal of import duties on Supima cotton presents a win-win situation for Indian textile manufacturers and U.S. Supima cotton producers in the short term. However, long-term sustainability requires ensuring fair prices for American farmers to maintain consistent supply.
