El Niño May Boost Cotton Cultivation in India, Offering Temporary Relief to Textile Industry
By jayesh chouhan 2026-07-22 14:01:45
Rise in Cotton Cultivation Expected Amidst El Niño; Textile Industry Gets Temporary Relief
New Delhi: The prospect of below-normal rainfall due to El Niño is being viewed as a positive sign for the Indian cotton sector. Experts believe that in conditions of scanty rainfall, farmers may prioritize cotton cultivation over water-intensive crops, potentially offsetting the initial shortfall in sowing.
According to the Ministry of Agriculture, cotton sowing covered 92.53 lakh hectares across the country by July 17, marking a 5.96% decline compared to the 98.39 lakh hectares recorded during the same period last year. While sowing has decreased in Maharashtra and Gujarat, increases have been noted in Telangana and Andhra Pradesh.
L.K. Gupta, Chairman and Managing Director of the Cotton Corporation of India (CCI), stated that if rainfall remains limited, farmers will be more inclined towards cotton cultivation, as the crop can yield well even with relatively less water. He expressed confidence that the availability of raw cotton for the domestic textile industry would remain adequate. He added that the CCI is working to supply cotton directly to mills to keep prices in check and ensure farmers receive better returns.
The government has waived the approximately 11% import duty on raw cotton until October 2026. This move is expected to ensure the availability of raw material until the arrival of the new domestic crop and alleviate price pressure on textile products.
However, industry experts have advised caution regarding global risks. According to Raja M. Shanmugham, former President of the Tirupur Exporters Association, the impact of El Niño is not limited to India alone. If production declines in major cotton-producing nations, global supplies could be disrupted, leading to a rise in raw material prices. In such a scenario, the CCI’s buffer stock and timely supply would prove crucial for the industry. According to data from the Directorate General of Foreign Trade (DGFT), India's raw cotton imports rose by 54.9% to reach $1.89 billion in the 2025-26 fiscal year (FY26), while exports declined by 33.9% to $436.37 million. Although the situation in the domestic market remains stable, the impact of El Niño on global cotton supplies will continue to be a key factor to watch.
