CAI President Atul Ganatra's interview to CNBC Awaaz – Key Points

Key Highlights from the Interview Given by CAI (Cotton Association of India) President Mr. Atul Ganatra to CNBC Awaaz on July 24, 2025

1. Rising Demand for Alternative Fibers:
Mr. Ganatra highlighted that there has been a significant increase in demand for alternative fibers like viscose and polyester over the past four years. In 2021, their daily consumption was around 1,800 tons, which has now risen to 2,600–2,700 tons per day. This upward trend is expected to accelerate further in the coming years.

2. Fiber Price Comparison & Yarn Realization Rates:

Current Prices:
Cotton: ₹170 per kg
Viscose: ₹155 per kg
Polyester: ₹102 per kg

Yarn Realization (percentage of fiber converted to yarn):

Cotton: 86–87%
Viscose/Polyester: Approx. 98%

3. National vs Global Fiber Usage Ratio:
India still uses 70% cotton and 30% synthetic fibers, whereas globally, the trend is reversed—70% manmade fibers and 30% cotton yarn.

4. Massive Surge in Cotton Imports:
There has been a dramatic rise in cotton imports this year. While only 1.5 million bales were imported last year, this year the number is expected to reach 4 million bales—an increase of over 250%, despite an 11% import duty. This is a concerning development for the Indian economy.

5. Competitiveness of Imported Cotton:
Currently, November shipment deals from Brazil and African countries are being finalized at ₹50,000–₹51,500 per candy, while domestic cotton prices stand at ₹56,000–₹57,000 per candy, which is 8–10% higher.
Imported cotton is considered more competitive due to higher quality, lower contamination, and better yarn recovery compared to Indian cotton.

6. Minimum Support Price & Sowing Situation:
The MSP for the upcoming season is ₹8,100 per quintal, at which the CCI (Cotton Corporation of India) will procure cotton from farmers. This has boosted farmer confidence.

Initially, there were concerns of a 10% decline in sowing area, but recent data shows sowing has already reached 10.1 million hectares, matching last year’s levels. If this trend continues, sowing could see a 3–4% increase this year.

Thanks to a timely monsoon, new crop arrivals may begin in North and South India by September 15.

7. Impact of Recycled Cotton:
Recycled cotton—priced at around 25% of the cost of virgin cotton—is being used in higher volumes, which has also contributed to the reduction in overall cotton demand in the country.

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