The Ministry of Textiles has taken several measures to help maintain stability in cotton prices and protect textile units from the impact of global price fluctuations. Cotton prices are naturally influenced by demand–supply dynamics and international market trends; therefore, the Ministry remains in continuous engagement with all stakeholders through the Textile Advisory Group to address price-related concerns across the cotton value chain. Further, to ease price pressures, the Government has exempted cotton imports from the existing 11% import duty, and this relief will remain in effect until 31.12.2025. In addition, the Government declares Minimum Support Prices (MSP) annually to protect farmers when market prices fall, and the Cotton Corporation of India (CCI), whenever undertaking MSP procurement, sells its stocks daily through an independent online e-auction platform, ensuring transparent price discovery and enabling the textile industry to access cotton at competitive rates.
The Cotton Corporation of India (CCI) facilitates direct access for end users, primarily textile mills, by selling its entire stock through daily online e-auctions. Priority is accorded to textile mills through favourable terms, such as lower registration fees and reduced Earnest Money Deposit requirements compared to traders. Moreover, CCI conducts two e-auctions each day, with the first auction reserved exclusively for textile mills, ensuring their requirements are met before sales to traders.
A five-year Mission for Cotton Productivity has been announced in the Union Budget 2025–26, with the Department of Agricultural Research & Education (DARE) as the nodal department and the Ministry of Textiles as a Support Ministry. The Mission is focused on enhancing cotton productivity, improving sustainability, and ensuring a steady supply of quality cotton.
Further, to provide integrated, world-class infrastructure for the entire textile value chain, the Government has approved the establishment of seven PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks across the country, including one in Virudhunagar, Tamil Nadu. There is no proposal currently under consideration for establishing any more Parks under the PM MITRA Scheme.
This information was provided by THE MINISTER OF STATE FOR TEXTILES PABITRA in a written reply to a question in Lok Sabha.
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