The Government’s ambitious objective of exporting textiles is under threat due to reduced cotton seeding during the current kharif season. This has dashed hopes that shipments of ready-made garments (RMG) from India will be able to secure additional contracts in the wake of the Bangladesh issue, accordion to two people aware of the matter.
Data from the agriculture ministry shows that as of 13th September, the amount of cotton sown has decreased to 11.24 million hectares from 12.36 million hectares at the same time previous year. The drop occurs during a time when cotton output in India is already difficult.
It is hoped that the area under seeding would increase from its current state of 11.2 million hectares to 11.6 million hectares. This is anticipated because, according to one of the sources, summer sowing in Tamil Nadu will add 200,000 hectares, and sowing in the western regions of Telangana and Karnataka will add an additional 100,000 hectares.
Despite reaching US $ 41.12 billion in FY ’22, textile exports dropped to US $ 35.55 billion in FY ’23 and US $ 34.40 billion in FY ’24.
By FY ’25, the Government wants to export more textiles than US $ 40 billion. The nation’s output of cotton has similarly been declining over time, with a peak of 36 million bales (each weighing 170 kg) produced in FY ’20.
Production fell to 35 million bales in FY ’21 and then again to 31 million bales in FY ’22. Despite a modest rebound to 33 million bales in FY ’23, production dropped back to 32 million bales in FY ’24.
The difficulties associated with growing cotton have gotten more severe in recent years. Outdated seed technology has severely harmed yields, which has forced many farmers to turn to other crops like rice, soybeans, etc.
Gujarat, Maharashtra, Telangana, Andhra Pradesh, Madhya Pradesh, Karnataka, Haryana, and Rajasthan are the states that cultivate the most cotton.
The India Brand Equity Foundation (IBEF) of the Commerce Ministry projects that by 2030, the Indian textile and apparel sector will have grown to US $ 350 billion at a 10 per cent compound annual growth rate. Additionally, India announced a goal to increase its textile exports to US $ 100 billion by 2030 in an effort to take a sizable chunk of the world market.