India’s imports of raw cotton and waste have surged by 72% in the current financial year (April–January), reaching over USD 1.79 billion. This sharp increase is largely attributed to the government’s import duty exemptions, the demand for higher-quality cotton, and rising international competition. According to the Cotton Association of India (CAI), total imports for the cotton year 2025–26 could reach 5 million bales.
During the April–January period, India’s imports of raw cotton and waste jumped from USD 1.04 billion last year to USD 1.79 billion. The primary reason behind this surge is mills and traders taking advantage of duty exemptions to make record purchases from international markets. Commerce Ministry data shows that, in terms of Indian rupees, imports during this period totaled ₹15,857 crore, up 81% from ₹8,771.96 crore in the same period last year.
CAI data indicates that by January, around 3.5 million bales (each weighing 170 kg) had already been imported in the 2025–26 cotton year, which began in October. Initially, the government had granted duty exemption on cotton imports until the end of September, later extending it to December 31, 2025, to increase supply and ease pressure on the textile sector. The industry had faced an additional 50% burden due to US tariffs, which had affected India’s competitiveness in global markets.
Typically, cotton imports in India attract an 11% duty. Former CAI President Atul S. Ganatra stated, “In value terms, this is the largest import in India’s history.” He estimates that total imports for the 2025–26 cotton year could reach 5 million bales, of which 3.5 million bales have already arrived. In the coming months, an additional 4.5 million bales of 32 mm extra-long staple cotton are expected. Moreover, under free trade agreements, 300,000 duty-free bales from Australia and 3.4 million bales from African countries with reduced 5.5% duty are anticipated.
According to sourcing agent Ramanuj Das Boob from Raichur, India imports cotton from countries including Brazil, Australia, the USA, and West African nations. The aim is to strengthen the textile sector’s global competitiveness with high-quality cotton. Ganatra further explained that spinning mills earn 23% higher profits from imported cotton compared to domestic cotton, while domestic cotton prices remain 8–10% higher than international rates.
FAQs:
1. Why have cotton imports increased in India?
Cotton imports increased due to duty exemption, higher-quality demand, and global competition.
2. How much has India imported so far in FY 2025–26?
India imported cotton worth USD 1.79 billion during April–January.
3. What is the expected total cotton import for 2025–26?
CAI estimates total imports may reach 5 million bales.
4. How do imports impact the textile industry?
Imported cotton improves quality and gives spinning mills 23% higher profit margins.
5. Does cotton import affect domestic cotton prices?
Yes, higher imports can ease domestic price pressure and improve supply balance.
