Why does India need to import cotton?
India’s textile sector, one of the country’s largest employers and export earners, relies heavily on a steady supply of quality cotton. Indian textile products, particularly premium yarns and fabrics, require extra-long staple (ELS) cotton, but domestic supply of this high-quality fibre is insufficient to meet demand. As Indian farmers are protected by the minimum support price (MSP), domestic cotton prices are often higher than global benchmarks, making it difficult for mills to compete with rivals in countries such as Vietnam, Bangladesh and Pakistan.
