Big cotton exporter India likely to turn into net importer soon

The MSMEs from the textile sector play a critical role in overall exports of India.  Record Low production twinned with a sharp surge in domestic demand may see India turn into a net cotton importer in FY23 from being one of the largest exporters.The projection of production this year has come down to 31.5 million bales(1 Bale = 218 kgs) while consumption is of 34.5 million bales.India may have to import nearly 1.5 million bales.

"India has been the largest producer and exporter of cotton for quite some time.But of late, chances are that we will become a net importer of cotton from being a net exporter.The reason is that while cotton production and productivity have not increased, cotton consumption is rising" ,said UP Singh said in a press conference

During last five years 90% cotton used by Industry is domestically produced and only about 5% to 10% of cotton has been imported.Besides this some imports were due to competitive prices.The textile industry plays a significant role in Indian economy by providing direct employment to an estimated 35 million people, by contributing 4 per cent of GDP and accounting for 35 per cent of gross export earnings.The textile businesses in India have been a major player in India's exports and need to be given special focus for their revival.

1) Source : An article by Ravi Dutta Mishra from The MINT Newspaper.                                                                                                 2) Image Source : https://www.4textile.com/