Confederation of Indian Textile Industry (CITI) has released a joint study by Gherzi and International Cotton Advisory Committee (ICAC), warning that India’s 11 per cent cotton import duty and stagnant productivity levels are weakening the global competitiveness of the country’s textile and apparel sector.

The report, titled Economic Analysis of Cotton Supply, US$ 350 billion textile and apparel industry size by 2030, including exports of US$ 100 billion.

“The Gherzi-ICAC report presents a detailed and implementable roadmap for stakeholders to realise the ambitious US$ 350 billion target that we have for the textile and apparel industry by 2030,” Ashwin Chandran, Chairman, CITI, said, adding that a strong textile industry can become “the farmer’s strongest customer” in line with India’s 5F vision.

The report also recommended empowering Cotton Corporation of India (CCI) to supply cotton to mills at internationally competitive prices. It estimated that CCI would require an annual buffer of around Rs 1,500 crore to offset the 11 per cent import duty disadvantage for approximately 100 lakh bales of cotton.

Additionally, the study proposed the creation of a strategic cotton reserve equivalent to three months of consumption to reduce market volatility, similar to reserve policies followed by countries such as China.

On the farm side, the report emphasized the need to improve cotton productivity, noting that stagnant yields continue to increase production costs and reduce farmer profitability. It also recommended establishing a Cotton Price Stabilization Fund with 5 per cent interest subvention support to help mitigate working capital pressures during peak procurement season.

India’s textile and apparel exports declined 2.2 per cent year-on-year to US$ 35.79 billion in FY 26, underlining the urgency of structural reforms across the cotton and textile value chain.