India’s cotton imports rose sharply in the December 2025 quarter after New Delhi temporarily exempted raw cotton from an 11% import duty, industry data shows, a move that is likely to reshape domestic and global market dynamics.
According to the Mumbai-based Cotton Association of India (CAI), cotton imports jumped 158% year-on-year to a record 3.1 million bales—each bale equivalent to roughly 170 kilograms—during the three months to December. This surge followed the government’s decision to allow duty-free imports for the quarter, significantly reducing costs for textile mills and buyers.
The CAI estimates that total imports for the 2025/26 marketing year—which began on 1st October—could increase by about 22% to a record 5 million bales, surpassing last year’s 4.1 million bales sourced from countries such as the United States, Brazil, Australia and several African nations.
Industry analysts say the increase in duty-free cotton supplies is expected to support global cotton prices while exerting downward pressure on higher domestic prices that had been driven up by crop damage in major producing regions.
The CAI has also revised its estimate for India’s cotton crop for the current season upwards to 31.7 million bales, citing improved production in states including Maharashtra and Telangana. However, it expects overall cotton consumption in India to decline by about 2.9% to 30.5 million bales in 2025/26, reflecting subdued overseas demand for Indian yarn, fabric and apparel.
India is the world’s second-largest cotton producer and a major player in the global textile supply chain. The textile industry directly employs more than 45 million people across the country.
Trade tensions also remain a concern for the sector; the United States, which accounts for nearly 29% of India’s approximately US $ 38 billion in annual textile exports, doubled tariffs on Indian textile imports to as high as 50% in August 2025, adding pressure on export competitiveness.
The record import figures underscore how policy changes can swiftly influence trade patterns in a sector that is central to India’s economy, with implications for both domestic producers and global commodity markets.
