India's apex cotton body says prices at 4-year-low, industry's survival vital to sustain cultivation

CMD of the Cotton Corporation of India, Lalit Kumar Gupta, has said that the survival of the textiles industry is necessary for farmers to sustain their interest in cotton cultivation, as he termed the interests of farmers and the industry interests as intertwined.

President of the All India Cotton FPO Association, Manish Daga echoed the sentiment, terming Minimum Support Price (MSP) as the only lure in the market, adding that lack of access to MSP for farmers can lead to a decrease in cotton sowing area by as early as the next year.

Stating that more exports will mean the industry will be able to afford to buy from cotton farmers, the Cotton Corporation's CMD said that further decisions on extension of import duty waiver on cotton will be based on a "holistic approach".

India has removed import duty on cotton till the end of the current calendar year. In view of global uncertainties, wars, and tariffs impacting textiles exports, he said that the government is taking all necessary steps to protect the interests of every stakeholder.

As Gupta pointed to an 8% increase in the MSP for the current cotton season, he highlighted that cotton prices in domestic and global markets are at a 4-year low. He told CNBC-TV18 that the government has opened 550 procurement centres across 11 cotton-growing regions and improved access for farmers to market yards in the hope of crossing last year's cotton procurement, which we described as the 2nd highest MSP operations.

To align procurement with regional crop readiness, procurement operations have started in the Northern Zone (Punjab, Haryana, Rajasthan) from 1st October, and are slated to start in the Central Zone (Gujarat, Maharashtra, Madhya Pradesh, Odisha) from 15th October and the Southern Zone (Telangana, Andhra Pradesh, Karnataka, Tamil Nadu) from 21st October.

Highlighting climate change, crop yields, and waterlogging as challenges for farmers as they may delay cotton flowering and compromise quality, Daga doesn't expect any rise in price above MSP in the current calendar year as purchase of textiles is down. He said that farmers will stand to benefit if the Cotton Corporation of India purchases over 1.5 crore bales, like it did in previous years.

However, he highlighted that procurement will be easier said than done and will depend on when it starts and the availability of quality cotton. Stating that India has 70-75% cotton farmers with small holdings, he added that they won't be able to hold cotton till the new calendar year if it isn't procured.Read about our editorial guidelines and ethics policy