Whalesbook
Supply Gap Threatens Knitwear Exports
Tiruppur, India's major knitwear export hub, is warning of a serious cotton deficit. Projections show a shortfall of about 45 lakh bales for the 2025-26 season. Demand is expected to hit 337 lakh bales, but only 292.15 lakh bales are forecast to arrive. This shortage is already squeezing supplies for spinning mills, pushing up costs for manufacturers.
High Import Duty Cuts Global Competitiveness
Industry leaders argue the current 11% import duty on cotton, combined with the domestic shortage, makes Indian textiles uncompetitive globally. Competitors in nearby countries get cheaper raw materials, letting them offer lower prices to buyers worldwide. This difference risks India losing market share.
New Trade Deals at Risk from Cotton Shortage
India's recent Free Trade Agreements are set to open major new export avenues for textiles. But, ongoing raw material shortages and high costs could prevent the industry from fully benefiting from these deals. This means India could miss out on the advantages of these new trade pacts.
Industry Assures Farmers: Protections Remain
To ease farm sector worries, industry leaders stressed that lower import duties won't harm local farmers. They believe demand for Indian cotton is strong. The Minimum Support Price (MSP) system already protects growers, ensuring mills pay at least that price for cotton.