In a statement to the Rajya Sabha, the government indicated that the removal of an 11 percent import duty on cotton has contributed to softer domestic prices, aligning them more closely with declining global trends. Officials stated this move has maintained affordability for the textile industry while emphasizing that established support systems continue to safeguard farmers.
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Data presented shows that international prices for a key cotton grade fell from approximately 79 cents per pound in mid-August to about 74 cents by December. During this period, domestic prices in India decreased from nearly 57,000 rupees per candy to a current range between 51,500 and 52,500 rupees. The government noted that domestic pricing remains subject to global and local market dynamics, currency fluctuations, and quality considerations.
To support cotton growers, the government has set a higher Minimum Support Price for the current season and reported significant procurement activity. The Cotton Corporation of India has purchased over 31 lakh bales valued at more than 13,400 crore rupees from hundreds of procurement centers across multiple states, ensuring farmers receive the guaranteed price and preventing distress sales.
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