Archive · 27 Dec 2025
Cotton Industry Faces Challenges in India
The Indian government is planning to spend ₹6,000 crore over five years to help cotton farmers.
The Textile Ministry will get ₹1,100 crore to help modernize factories and support farmers.
The Agriculture Ministry will get the most money, ₹4,000 crore, to help farmers directly.
The ICAR will get ₹600 crore to do research.
Cotton production has been going down, and the government wants to fix this by helping farmers grow better cotton and get better prices.
They also want to make sure that imported cotton doesn't hurt local farmers.
Meanwhile, open-end spinning mills in Tamil Nadu are cutting production by 50% because the price of cotton waste has gone up while the price of yarn has gone down.
This is causing them to lose money.
They want the government to control the price of cotton waste and reduce electricity costs.
They also want the government to stop exporting cotton waste so that it can be used to make more valuable products in India.
Another group, TASMA, wants the government to extend duty-free imports of cotton because there isn't enough cotton available in India right now.
The Ministry of Textiles secured over 20% (₹1,100 crore) of the ₹6,000 crore Cotton Productivity Mission funds.
The Department of Agriculture and Farmers’ Welfare is likely to receive the largest share of over ₹4,000 crore (69%).
ICAR is expected to get less than ₹600 crore (9%) for implementation over a five-year period.
India's cotton production has decreased for the third year in a row, with a drop in acreage and yield.
The mission aims to improve cotton productivity, sustainability, and promote extra-long staple cotton varieties.
- Who
- Ministry of Textiles, Department of Agriculture and Farmers’ Welfare, ICAR, Open-End Spinning Mills Association (OSMA), Tamil Nadu Spinning Mills Association (TASMA)
- What
- Allocation of funds for the Cotton Productivity Mission, production cuts by open-end spinning mills, and requests for duty-free cotton imports
- When
- Mission announced 11 months ago, funds to be allocated over 5 years, current issues in December 2025
- Where
- India, particularly Tamil Nadu
- Why
- To improve cotton productivity, sustainability, and farmer incomes, and to address financial losses due to rising cotton waste prices and falling yarn prices
- Total Funds
- ₹6,000 crore
- Textile Ministry Share
- ₹1,100 crore (22%)
- Agriculture Ministry Share
- ₹4,000 crore (69%)
- ICAR Share
- ₹600 crore (9%)
- Mission Duration
- 5 years
- Cotton Production 2025-26
- 29.22 million bales
- Cotton Acreage Reduction
- 2 million hectares in 4 years
- All-India Average Yield
- Less than 5 quintal/hectare
- Cotton Waste Price Increase
- ₹100/kg to ₹113/kg
- Open-End Yarn Price Drop
- 20s weft from ₹150/kg to ₹140/kg, 20s warp from ₹165/kg to ₹158/kg
- Daily Output Loss
- ₹10 crore during full halts
