Lok Sabha Question No. 291 (UNSTARRED), answered on 2025-12-02
Subject: Cotton Prices
Ministry: TEXTILES
Asked by: Thiru D M Kathir Anand

## 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 मार्घेररटा ) 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 pricerelated  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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