Duty-Free Cotton Imports Set To Lift Stocks In 2025-26
India’s cotton imports are expected to surge to 60–65 lakh bales (170 kg each) in the 2025-26 season following the government’s decision to remove import duty on cotton, a move aimed at ensuring adequate availability of quality fibre for the textile industry.
According to the Cotton Association of India (CAI), cotton imports had already reached 43.5 lakh bales by the end of May 2026, compared to 33 lakh bales during the same period last year. With duty-free imports now in place, the industry is expected to bring in an additional 15 lakh bales before the season concludes in September.
The increase in imports is expected to significantly strengthen cotton availability, with carry-forward stocks projected to rise to 85.6 lakh bales at the beginning of the 2026-27 season, up from around 60 lakh bales a year earlier.
CAI has maintained its estimate for the 2025-26 cotton crop at 334 lakh bales, while cotton pressing stood at 322.35 lakh bales up to the end of May. Cotton exports for the season are estimated at 10 lakh bales.
Despite domestic cotton being available at prices comparable to imported fibre, spinning mills continue to favour imports due to better processing performance and higher yarn realisation. Industry sources indicate that yarn produced from imported cotton earns a premium of around Rs 7 per kg in the market, making imported fibre more attractive for manufacturers.
As of May-end, total cotton stocks were estimated at 191.4 lakh bales, with mills holding around 82 lakh bales and the remainder distributed among the Cotton Corporation of India (CCI), traders, ginners and multinational companies.
The rise in imports is expected to provide greater raw material flexibility for textile mills while ensuring sufficient cotton availability for the industry in the coming season.
