India's Textile Export Targets May Be Affected by Low Cotton Sowing During the Kharif Season Due to Production Decline
The reduction in cotton sowing during the current kharif season is raising concerns about India's ability to meet its ambitious textile export goals. This comes at a time when Indian readymade garment (RMG) exporters were hoping to capitalize on the ongoing crisis in Bangladesh, according to industry sources.
As of September 13, cotton sowing had declined to 11.24 million hectares, compared to 12.36 million hectares during the same period last year, as per agriculture ministry data. This drop adds to the challenges already faced by Indian cotton production in recent years
“Production has been contracting, and this year’s low sowing levels are expected to further reduce cotton bale output,” an industry insider said. It is hoped that sowing might reach 11.6 million hectares, with additional contributions from summer sowing in Tamil Nadu, Telangana, and Karnataka.
Impact on Exports
The dip in cotton production could impact India’s textile exports, which have already been on a downward trend. After peaking at $41.12 billion in FY22, textile exports fell to $35.55 billion in FY23 and further to $34.40 billion in FY24. With reduced cotton sowing, achieving the government's export target of over $40 billion by FY25 will be challenging.
India’s cotton production, which reached 36 million bales in FY20, has been declining, with current estimates for FY24 at 32 million bales.
Shift to Other Crops
Many cotton farmers are switching to alternative crops like soybean and paddy due to outdated seed technology and high labor costs. “Cotton cultivation requires more resources and effort compared to other crops like soybeans, making it less attractive to farmers,” said Ganesh Nanote, a cotton farmer in Maharashtra.
Growing Export Goals
India’s textile and apparel industry is projected to grow at 10% CAGR, reaching $350 billion by 2030. The country also aims to scale up textile exports to $100 billion by 2030. However, low cotton sowing and rising cotton prices could pose a significant risk to this ambition.
India's textile sector contributes 2.3% to GDP and 12% to exports, and the government has increased its budget allocation for the sector to ₹4,417.09 crore for FY25 to support growth.
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