Imported cotton is being given preference over domestic cotton
2025-09-02 11:42:57
Imported cotton is being preferred over domestic cotton due to better quality and competitiveness in prices.
Nagpur (Maharashtra): With consignments of imported bales booked at an average of Rs 52,000-53000 per candy (per 356 kg), spinners say that despite matching with domestic rates, import of foreign bales is being preferred due to better quality.
Sources said some Indian spinners (yarn mills) have imported low quality bales at Rs 48,000 per candy and are looking to buy more than 10,000 bales of the same quality at 1% lower prices. This means that the government agency, Cotton Corporation of India (CCI), will have to reduce the rates of processed cotton further.
Since the government has removed import duty on cotton, CCI has cut prices by over Rs 3,000 per candy, including a discount for bulk purchases of up to Rs 400-600 per candy.
Traders say if the rate per candy is between Rs 52,000-53,000, private traders will not be able to pay more than Rs 6,500-6700 per quintal for raw cotton brought by farmers. The minimum support price (MSP) is Rs 8,110 per quintal. Vijay Nival, a farmer-cum-trader from Yavatmal, said private traders will not be able to buy raw cotton at MSP and farmers will have to depend on CCI procurement.
Manjit Chawla of Manjit Fiber Pvt Ltd, Wani, Yavatmal, said even at the same prices, bales coming from Brazil or Australia are being preferred due to better quality. Since the quality standards (recovery) of imported bales are slightly better than domestic bales, spinners/yarn mills will prefer imports if cotton is available at similar rates. This means Indian companies, including CCI, will have to cut prices further.
Initial arrivals have started in areas like Khargone in Madhya Pradesh, but rates are low due to high moisture levels, Chawla said. Indian spinners have so far been importing cotton from countries like Australia, Brazil, Tanzania, Chad, Burkina Faso and Benin.
