India's Cotton Surge: Navigating Imports and Farmer Support
India is set to purchase a record amount of cotton from its farmers as domestic prices drop amid increased imports and decelerated demand due to U.S. tariffs. The government has increased procurement prices but local rates remain lower. The Cotton Corporation plans to expand procurement efforts despite these challenges.
In a bid to support its farmers, India is poised to purchase an unprecedented volume of cotton this season, industry officials reported. The nation's cotton sector is grappling with declining domestic prices, attributed to cheaper imports and weakened demand sparked by hefty U.S. tariffs on Indian textile exports.
Consumption has decelerated within India, the globe's second premier cotton producer, with exports to the United States - responsible for nearly 29% of India's textile export revenue - sharply declining. According to Atul Ganatra, president of the Cotton Association of India, this sluggish demand is adversely affecting the industry, and farmers might miss out on the assured support price for their produce.
To counteract market pressures, the government is gearing up to purchase a record 14 million bales of cotton. The Cotton Corporation of India plans to increase its procurement centers by 10% to facilitate this initiative, aiming to stabilize the market amid rising new-season crop supplies and continued tariff impacts.
(With inputs from agencies.)
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