CCI sells 94% cotton stock via e-auctions; ₹6,000 crore Cotton Productivity Mission set to boost sector

New Delhi: The Cotton Corporation of India (CCI) has sold 94.28% of its 2024–25 cotton procurement through online auctions this week, while largely maintaining prevailing price levels, indicating stable market operations despite sectoral pressures.

Meanwhile, the Textiles Ministry is expected to receive over ₹1,100 crore under the government’s ₹6,000 crore Cotton Productivity Mission, a five-year initiative announced in the Union Budget aimed at reviving India’s stressed cotton ecosystem.

The mission, which accounts for roughly 22% of the total outlay for the scheme, is designed to modernise textile infrastructure, improve lint quality, and strengthen the farm-to-fabric value chain. However, the final allocation is still awaiting Cabinet approval, which has reportedly been delayed for nearly a year.

Declining cotton output raises concern

India’s cotton sector continues to face structural challenges, with production falling for three consecutive years—from 32.52 million bales in 2023–24 to 29.22 million bales in 2025–26. The cultivated area has also shrunk by around 2 million hectares over the past four years.

Productivity remains a major concern, with India’s yield stuck below 5 quintals per hectare, compared to a global average of 9 quintals and around 10 quintals per hectare in the United States.

Fund allocation across departments

Under the ₹6,000 crore mission, the Department of Agriculture and Farmers Welfare will receive the largest share of over ₹4,000 crore (about 69%). The Indian Council of Agricultural Research (ICAR) will receive nearly ₹600 crore (around 9%), while the Textiles Ministry has been allocated ₹1,100 crore for textile-side interventions.

The distribution has reportedly triggered internal differences, with concerns raised by ICAR scientists over limited funding despite being tasked with designing and implementing key mission objectives.

Focus on quality and infrastructure upgrade

The Textiles Ministry plans to utilise its allocation to improve ginning infrastructure, bale handling systems, and lint quality assessment processes. Officials argue that while farm-level production is important, post-harvest handling plays a critical role in determining the quality of cotton supplied to mills.

Poor ginning practices and contamination during handling have been identified as major factors affecting fibre quality, forcing mills to either depend on imported cotton or use lower-grade domestic supply.

Long-term competitiveness goals

The mission also aligns with India’s broader textile ambitions, including building a $250 billion industry by 2030, with $100 billion targeted from exports. Cotton remains central to India’s textile sector, supporting millions of livelihoods and export earnings.

Policy makers believe that strengthening both agricultural productivity and processing infrastructure is essential to improving competitiveness and ensuring a stable supply of high-quality domestic cotton for the textile industry.

Read More :- The Cotton Corporation of India (CCI) kept its prices unchanged this week and sold 94.28% of its 2024-25 cotton procurement through e-auctions.