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’s latest estimate, total cotton production in FY26 (as of January 2026) is estimated at 31.70 million bales (of 170 kg each), compared with 31.24 million bales in 2024-25. [VP1.1]The total cotton supply for the FY2025-26 season (up to 30 September 2026) is estimated at 42.81 million bales, comprising opening stock, production and imports. Cotton pressing for the season is estimated at 31.70 million bales, while imports are projected at 4.70 million bales. Total availability up to January 2026 is estimated at 35.76 million bales.
Cotton Production in India (lakh bales of 170 kg)
Source: The Cotton Corporation of India Limited, Cotton Association of India,
Note: * - January 31, 2026
The Cotton Association of India has also maintained its export estimate for the FY2025-26 season at 1.50 million bales, compared with 1.80 million bales in FY2024-25. Regionally, the Central Zone remains the largest cotton-producing belt in India, with estimated output of 19.10 million bales in FY2025-26 (as of January 2026), led by Maharashtra at 9.80 million bales, Gujarat at 7.50 million bales, and Madhya Pradesh at 1.80 million bales. The South Zone is the second-largest producing region at 9.50 million bales, with Telangana contributing 4.50 million bales, followed by Karnataka at 2.70 million bales, Andhra Pradesh at 1.80 million bales, and Tamil Nadu at 0.50 million bales. These regions continue to anchor India’s cotton production and support the country’s extensive textile industry.
Export Trend - Total Product
Total Exports (US$ million)
Source: Ministry of Commerce & Industry
India’s exports of cotton products, including cotton fabrics & made-ups, raw cotton (including waste), and cotton yarn, have demonstrated strong performance, supported by steady global demand across textile and apparel value chains. During FY26, total exports of these cotton products stood at US$ 10,655.51 million. Among the key segments, cotton fabrics & made-ups accounted for US$ 6,595.08 million, followed by cotton yarn at US$ 3,521.73 million, while raw cotton (including waste) contributed US$ 538.70 million, indicating a higher share of value-added exports compared to raw material shipments.
Among the key segments, cotton fabrics & made-ups accounted for US$ 6,595.08 million, followed by cotton yarn at US$ 3,521.73 million, while raw cotton (including waste) contributed US$ 538.70 million.
This highlights the dominance of value-added products in India’s cotton export portfolio. The overall trend indicates strong demand from global textile manufacturing hubs and developed markets, reinforcing India’s integrated presence across the cotton value chain.
India’s textile exports are projected to reach US$ 65 billion by FY26. 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 cotton exports are widely distributed across global markets, with strong demand from both textile manufacturing hubs and developed economies. Key destinations include Bangladesh, the USA, China, Sri Lanka, Egypt, Vietnam, the UK, UAE and Germany, among others. During FY26 (April 2025–March 2026), total cotton exports stood at US$ 10,655.51 million, reflecting India’s robust presence in the global cotton value chain. The export mix caters to a diverse set of requirements, including raw cotton for processing hubs and value-added products such as yarn and fabrics for manufacturing apparel.
During FY26 (April 2025–March 2026), Bangladesh emerged as the largest importer, accounting for US$ 2,376.19 million (22.30%), closely followed by the USA at US$ 2,350.94 million (22.06%). Other major markets included China (US$ 469.91 million; 4.41%), Sri Lanka (US$ 448.64 million; 4.21%) and Egypt (US$ 296.28 million; 2.78%). Additional contributors such as Vietnam (US$ 246.13 million; 2.31%), the UK (US$ 230.16 million; 2.16%), UAE (US$ 229.00 million; 2.15%) and Germany (US$ 213.11 million; 2.00%) further highlight the diversified export footprint. The overall trend indicates a strong concentration in Asian textile manufacturing economies alongside stable demand from western markets.
Country-wise cotton exports in FY26
Source: Ministry of Commerce & Industry
Government Initiatives
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.
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