Introduction
India is the largest producer of cotton globally, accounting for 23% of total global cotton production. It is a crop that holds significant importance for the Indian economy and the livelihood of Indian cotton farmers. Cotton grows over 13.06 million hectares in India compared to 33.1 million hectares globally. The cotton sector supports six million farmers and provides employment to over 45 million people across the value chain.
As per the Cotton Association of India (CAI), India’s total cotton pressing for the 2026-27 season is estimated at 33.90 million bales of 170 kg each, up from 31.24 million bales in 2025-26. The estimate was increased by 0.20 million bales from the previous month's estimate of 33.70 million bales. Total cotton supply for the season is estimated at 45.66 million bales, comprising opening stock of 5.56 million bales, cotton pressing of 33.90 million bales and imports of 6.20 million bales.
Cotton Production in India (lakh bales of 170 kg)
Source: The Cotton Corporation of India Limited, Cotton Association of India,
Domestic cotton consumption during 2026-27 is estimated at 34.80 million bales, while exports are estimated at 1.50 million bales. As of 31 July 2026, cumulative cotton pressing stood at 33.29 million bales, imports at 5.40 million bales and cotton consumption at 29.00 million bales. Export shipments during the period stood at 1.23 million bales. The closing stock as of 31 July 2026 was estimated at 14.02 million bales.
The Central Zone remained the largest cotton-producing region, with estimated pressing of 20.65 million bales during the 2026-27 season. Maharashtra accounted for 11.85 million bales, followed by Gujarat at 7.00 million bales and Madhya Pradesh at 1.80 million bales. The South Zone followed with 9.80 million bales, led by Telangana at 4.30 million bales, Karnataka at 2.85 million bales, Andhra Pradesh at 2.10 million bales and Tamil Nadu at 0.55 million bales. The North Zone is estimated at 2.90 million bales, while Odisha and other states account for 0.35 million and 0.20 million bales, respectively.
Export Trend - Total Product
Total Exports (US$ million)
Source: Ministry of Commerce & Industry, FY27* April- June 2026
India’s exports of cotton products, including cotton fabrics and made-ups, raw cotton (including waste) and cotton yarn, stood at US$ 2,715.18 million during April-June 2026. Cotton fabrics and made-ups accounted for the largest share at US$ 1,612.84 million, followed by cotton yarn at US$ 956.02 million and raw cotton, including waste, at US$ 146.32 million. The export mix indicates a stronger contribution from value-added cotton products, with fabrics, made-ups and yarn together accounting for the majority of exports during the period. The performance highlights India’s presence across the cotton value chain, from raw cotton to processed textile products. The relatively higher share of fabrics, made-ups and yarn also underscores the importance of value-added textile exports in India’s cotton trade. The country's textile production for domestic and export markets is expected to grow at a 10% CAGR, reaching US$ 350 billion by 2030, driven by strong infrastructure, skilled labor, and government initiatives.
The focus continues to be on adopting the latest innovative technologies and global best farming practices to enhance productivity and achieve sustainable quality cotton output. To achieve these goals, the emphasis remains to motivate cotton farmers through awareness meetings, timely advisories and transfer of technology from the lab to the field in the most effective manner by using natural methods and adopting modern scientific farm practices.
Export by Country
India’s exports of cotton products, including cotton fabrics and made-ups, cotton yarn and raw cotton (including waste), stood at US$ 2,715 million during FY27 (April-June 2026). India’s cotton exports during FY27 (April-June 2026) were led by Bangladesh and the USA, with strong demand across cotton fabrics and made-ups, raw cotton and cotton yarn. Among the top 10 destinations, Bangladesh recorded the highest exports at US$ 648.79 million, followed by the USA at US$ 595.71 million and China at US$ 183.31 million. Sri Lanka and Vietnam followed with exports of US$ 91.46 million and US$ 85.58 million, respectively.
Other major destinations included the UK at US$ 58.90 million, Germany at US$ 51.05 million, Peru at US$ 49.94 million, Nigeria at US$ 45.67 million and Egypt at US$ 42.47 million. Together, these 10 markets accounted for US$ 1,852.88 million in exports during the period, indicating a strong concentration of India's cotton exports across key Asian textile markets and developed economies. Bangladesh recorded the highest imports of Indian cotton yarn at US$ 405.81 million, while the USA was the largest destination for cotton fabrics and made-ups at US$ 590.47 million.
Country-wise cotton exports in FY27*
Source: Ministry of Commerce & Industry, FY27* April- June 2026
Vietnam was also a significant market for raw cotton, importing US$ 24.97 million, while Peru's imports were primarily concentrated in cotton yarn at US$ 46.89 million. The destination-wise mix highlights India's diversified presence across both raw materials and value-added cotton products.
Government Initiatives
The Government’s PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks, with a scheme outlay of Rs. 4,445 crore (US$ 468.04 million) for 2021-22 to 2027-28, aim to develop integrated textile manufacturing hubs across seven states under the 5F vision, Farm to Fibre to Factory to Fashion to Foreign. DPRs worth Rs. 13,537 crore (US$ 1.42 billion) have been finalised, while investment interests of Rs. 68,590 crore (US$ 7.22 billion) have been received so far. External infrastructure works worth Rs. 2,736 crore (US$ 288.09 million) and internal infrastructure works worth Rs. 1,720 crore (US$ 181.11 million) are under development across the parks. The initiative is aimed at strengthening the textile value chain and supporting investment, employment and exports.
India’s cotton and textile exports continue to demonstrate resilience, supported by targeted government initiatives to enhance competitiveness and ensure stable supply. Measures such as the Credit Guarantee Scheme for Exporters (CGSE), RoDTEP, and RoSCTL have reduced export costs and improved liquidity, while the temporary removal of import duty on cotton has aligned domestic prices with global markets, boosting export potential. At the same time, Minimum Support Price (MSP) operations safeguard farmers’ incomes, reflecting a balanced approach that strengthens India’s position in global cotton trade while protecting domestic stakeholders.
The government has been implementing various policy initiatives and schemes to encourage cotton spinning millers in the country, including the announcement of key reforms under a Special Package that includes additional incentives under the Amended Technology Upgradation Fund Scheme (ATUFS), relaxation of Section 80JJAA of the Income Tax Act, and the introduction of fixed-term employment for the apparel sector. Under the Market Access Initiative (MAI) Scheme, the government offers rebates on state and central taxes and levies that are integrated into production, as well as aid to exporters. Schemes like SAMARTH (Scheme for Capacity Building in the Textile Sector) aim to address the shortage of skilled workers in the textile sector with a target of training 10 lakh people. The Cott-Ally mobile app was created to help farmers by providing information on minimum support prices (MSP), locating nearby procurement centers, tracking payments, and sharing best farming practices.
The Union Budget 2025-26 has announced a five-year Cotton Mission to increase cotton productivity especially extra-long staple varieties. Science & Technology support will be provided to farmers under this Mission. The Mission is in line with the 5 F principle and will increase income of the farmers and augment a steady supply of quality cotton. By boosting domestic productivity, this initiative will stabilise raw material availability, reduce import dependence and enhance the global competitiveness of India’s textile sector, where 80% of capacity is driven by MSMEs.
Governing Body
Cotton Corporation of India (CCI)
The Cotton Corporation of India Ltd. (CCI), established in July 1970 under the Ministry of Textiles, Government of India, is a public sector undertaking that plays a key role in India’s cotton sector. It was initially set up as a canalizing agency for cotton imports and procurement to support farmers and ensure raw material availability for textile mills. Over time, its role has evolved, and it is now primarily responsible for procurement, marketing, and distribution of cotton, along with implementing Minimum Support Price (MSP) operations to protect farmers when market prices fall. The corporation also undertakes commercial purchases, facilitates cotton trade and exports, ensures quality control, and supports the domestic textile industry by maintaining a stable supply of raw cotton across the country.
FAQs
Bangladesh and the USA were the largest importers of Indian cotton products in FY26, accounting for US$ 2,376.19 million (22.30%) and US$ 2,350.94 million (22.06%), respectively. China, Sri Lanka and Egypt were other major destinations.
India’s exports of cotton products, including cotton fabrics and made-ups, cotton yarn and raw cotton, stood at US$ 10,655.51 million in FY26, compared with US$ 11,489 million in FY25. The export basket continues to be led by value-added products such as fabrics, made-ups and yarn.
India’s major cotton exports include cotton fabrics and made-ups, cotton yarn, and raw cotton, including waste. In FY26, fabrics and made-ups accounted for US$ 6,595.08 million, followed by cotton yarn at US$ 3,521.73 million and raw cotton at US$ 538.70 million.
The cotton textile industry contributes through exports of value-added products such as fabrics, made-ups and yarn, alongside raw cotton. These products serve global textile manufacturing and apparel value chains, strengthening India’s integrated presence across the cotton sector.
Maharashtra, Gujarat and Madhya Pradesh are the leading cotton-producing states in the Central Zone, while Telangana, Karnataka and Andhra Pradesh are major producers in the South Zone. These regions anchor India’s cotton production and support its extensive textile industry.
Initiatives such as the Credit Guarantee Scheme for Exporters (CGSE), RoDTEP and RoSCTL help reduce export costs and improve liquidity. PM MITRA Parks, the Market Access Initiative (MAI) and the Cotton Mission also support textile infrastructure, exporter assistance and cotton productivity.
India is strengthening its global position through value-added cotton exports, improved export competitiveness and measures to ensure stable raw material supply. Investments in integrated textile manufacturing hubs and initiatives to enhance cotton productivity are also supporting the sector’s competitiveness.
Cotton production provides the raw material base for India’s textile value chain, supporting exports ranging from raw cotton to yarn, fabrics and made-ups. Productivity improvements and a steady supply of quality cotton help strengthen the textile sector’s export capacity.
Bangladesh, the USA, China, Sri Lanka, Vietnam, the UK, Germany, Peru, Nigeria and Egypt are key markets for Indian cotton products. Demand from Asian textile manufacturing hubs and developed economies offers opportunities across raw cotton, yarn and value-added textile products.
India’s cotton export outlook is supported by initiatives to improve cotton productivity, ensure a stable supply of quality raw material and strengthen textile manufacturing infrastructure. The Cotton Mission and PM MITRA Parks are expected to support the sector’s global competitiveness and export potential.
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