Cotton Prices Ease After Import Duty Removal, MSP Continues To Protect Farmers: Pabitra Margherita

New Delhi, Dec 20 (KNN) In a written reply to the Rajya Sabha on Friday, Minister of State for Textiles Pabitra Margherita said the removal of the 11 per cent import duty on cotton has helped soften domestic prices, while MSP procurement and other support mechanisms continue to protect farmers’ interests.

Impact of Import Duty Exemption on Prices

The minister said domestic cotton prices have eased broadly in line with global trends following the duty exemption. 

International prices of equivalent S-6 cotton declined from about 79.15 US cents per pound prior to August 19, 2025, to around 73.95 US cents per pound in December 2025. Correspondingly, domestic prices softened from nearly Rs 57,000 per candy to around Rs 52,500 per candy, and are currently ruling in the range of Rs 51,500–Rs 52,500 per candy.

He noted that domestic prices are influenced by both global and local demand-supply conditions, exchange rate movements and quality factors. 

Cotton imports accounted for about 13.93 per cent of total domestic consumption during the 2024–25 season. 

The government said the current price levels ensure affordability for the textile industry, while MSP-based procurement continues to protect farmers.

Support to Cotton Farmers

The government reiterated that cotton farmers are supported through the MSP mechanism, which guarantees a return of at least 50 per cent over the cost of production. 

For the 2025–26 season, MSP has been fixed at Rs 7,710 per quintal for medium staple cotton and Rs 8,110 per quintal for long staple cotton, marking an increase of Rs 589 per quintal over the previous season.

To prevent distress sales, the Cotton Corporation of India (CCI) has procured around 31.19 lakh bales of cotton worth Rs 13,492 crore under MSP operations as of December 11, 2025. Procurement has been carried out through 570 centres across 149 districts in 11 states.

(KNN Bureau)