**Executive Summary**
This document summarizes the Ministry of Textiles' responses to Lok Sabha Unstarred Question No. 291 regarding cotton prices and related initiatives. The responses cover measures to stabilize cotton prices, the Cotton Corporation of India's (CCI) direct sales, schemes for price stability, and textile park development. The exemption of cotton import duties will remain in effect until 31.12.2025.
**Key Points / Main Content**
* **Cotton Price Stabilization Measures:**
* The Ministry of Textiles continuously engages with stakeholders via the Textile Advisory Group to address price concerns.
* Cotton import duties are exempted (existing 11%), effective until 31.12.2025, to ease price pressures.
* The Government declares Minimum Support Prices (MSP) annually to protect farmers.
* CCI sells stocks daily through an independent online e-auction platform to ensure transparent pricing and competitive access for the textile industry.
* **Cotton Corporation of India (CCI) Sales:**
* CCI sells its entire stock through daily online e-auctions, prioritizing textile mills.
* Textile mills receive favorable terms, including lower registration fees and reduced Earnest Money Deposit requirements compared to traders.
* CCI conducts two e-auctions daily, with the first reserved exclusively for textile mills.
* **Mission for Cotton Productivity:**
* A five-year Mission for Cotton Productivity has been announced in the Union Budget 2025-26.
* The Department of Agricultural Research & Education (DARE) is the nodal department, with the Ministry of Textiles as a Support Ministry.
* The Mission focuses on enhancing cotton productivity, improving sustainability, and ensuring a steady supply of quality cotton.
* **PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks:**
* The Government has approved the establishment of seven PM MITRA Parks across the country, including one in Virudhunagar, Tamil Nadu.
* There is no proposal currently under consideration for establishing any more Parks under the PM MITRA Scheme.
**Impact Analysis**
**Stakeholder: Textile Units**
* **Impact:** Benefit from stable cotton prices, direct access to cotton through CCI auctions, and the Mission for Cotton Productivity.
* **Action Required:** Participate in the daily online e-auctions conducted by CCI to procure cotton.
**Stakeholder: Cotton Farmers**
* **Impact:** Protected by the Government's declaration of Minimum Support Prices (MSP) annually.
* **Action Required:** Monitor market prices and be aware of MSP announcements.
**Stakeholder: Cotton Traders**
* **Impact:** Face priority for textile mills in CCI e-auctions and monitoring of cotton exports after domestic demands are fulfilled.
* **Action Required:** Adapt to the prioritized access for textile mills in CCI e-auctions.
**Stakeholder: Ministry of Textiles**
* **Impact:** Responsible for implementing measures to maintain cotton price stability and overseeing the Mission for Cotton Productivity.
* **Action Required:** Continue engaging with stakeholders through the Textile Advisory Group and support the Department of Agricultural Research & Education (DARE) in the implementation of the Mission for Cotton Productivity.
**Stakeholder: Department of Agricultural Research & Education (DARE)**
* **Impact:** Nodal department for the five-year Mission for Cotton Productivity.
* **Action Required:** Lead the implementation of the Mission for Cotton Productivity, focusing on enhancing cotton productivity, improving sustainability, and ensuring a steady supply of quality cotton.
Key Entities Referenced
Ministry of Textiles: The ministry responsible for maintaining stability in cotton prices and ensuring the growth and development of the textile industry.
Cotton Corporation of India (CCI): A government agency that sells cotton to end consumers, especially textile mills, and undertakes MSP procurement.
PM MITRA Scheme: A scheme to develop integrated textile parks across the country.
Minimum Support Prices (MSP): Declared annually by the government to protect farmers when market prices fall.
Tamil Nadu: A state where integrated textile parks are being developed under the PM Mitra Scheme.
LOK SABHA
UNSTARRED QUESTION NO. 291
TO BE ANSWERED ON 02.12.2025
COTTON PRICES
291. THIRU D M KATHIR ANAND:
Will the Minister of TEXTILES वस्त्र मंत्री
be pleased to state :
(a) whether the Ministry of Textiles has taken measures to keep cotton prices stable to ensure textile
units are not affected by fluctuating global cotton prices;
(b) if so, the proactive measures taken by the Cotton Corporation of India (CCI) and Ministry of Textiles
in this regard;
(c) whether the CCI has decided to sell cotton to end consumers directly, and not to traders and monitor
traders to export cotton only after the domestic cotton demands are fulfilled and if so, the details thereof;
(d) whether the Government has initiated special schemes for keeping cotton price stable, including the
construction of storage godowns and if so, the details thereof and if not, the reasons there for; and
(e) the steps taken by the Government to develop two more integrated Textile parks in Tamil Nadu under
the PM Mitra Scheme?
उत्तर
ANSWER
वस्त्र राज् य मंत्री (श्री पबित्र मार्घरे रटा)
THE MINISTER OF STATE FOR TEXTILES
(SHRI PABITRA MARGHERITA)
(a) & (b): The Ministry of Textiles has taken several measures to help maintain stability in cotton
prices and protect textile units from the impact of global price fluctuations. Cotton prices are naturally
influenced by demand–supply dynamics and international market trends; therefore, the Ministry remains
in continuous engagement with all stakeholders through the Textile Advisory Group to address price-
related concerns across the cotton value chain. Further, to ease price pressures, the Government has
exempted cotton imports from the existing 11% import duty, and this relief will remain in effect until
31.12.2025. In addition, the Government declares Minimum Support Prices (MSP) annually to protect
farmers when market prices fall, and the Cotton Corporation of India (CCI), whenever undertaking MSP
procurement, sells its stocks daily through an independent online e-auction platform, ensuring
transparent price discovery and enabling the textile industry to access cotton at competitive rates.
(c): The Cotton Corporation of India (CCI) facilitates direct access for end users, primarily textile
mills, by selling its entire stock through daily online e-auctions. Priority is accorded to textile mills
through favourable terms, such as lower registration fees and reduced Earnest Money Deposit
requirements compared to traders. Moreover, CCI conducts two e-auctions each day, with the first
auction reserved exclusively for textile mills, ensuring their requirements are met before sales to traders.(d) & (e): A five-year Mission for Cotton Productivity has been announced in the Union Budget
2025–26, with the Department of Agricultural Research & Education (DARE) as the nodal department
and the Ministry of Textiles as a Support Ministry. The Mission is focused on enhancing cotton
productivity, improving sustainability, and ensuring a steady supply of quality cotton.
Further, to provide integrated, world-class infrastructure for the entire textile value chain, the
Government has approved the establishment of seven PM Mega Integrated Textile Region and Apparel
(PM MITRA) Parks across the country, including one in Virudhunagar, Tamil Nadu. There is no
proposal currently under consideration for establishing any more Parks under the PM MITRA Scheme.
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