India’s Textile Ministry may receive ₹1,100 crore funding through the Cotton Productivity Mission to boost yields, farmer income, and raw material security.
The Ministry of Textiles is understood to have prevailed over other departments to secure more than one-fifth of the proposed ₹6,000 crore outlay for the Cotton Productivity Mission, which is awaiting the Cabinet’s approval almost 11 months after its announcement.
“Though it is called a productivity mission, the Indian Council of Agricultural Research (ICAR) will receive less than 10 per cent of the funding, yet carry the entire responsibility for delivering results starting with preparing the Cabinet note,” said a former senior scientist of ICAR’s Cotton Research Centre in Nagpur.
He recommended a basmati style intervention to popularize cotton varieties, arguing that the Textile Ministry should act as a bridge between ICAR and user industries instead of seeking a larger share of funds. More importantly, he said, farmers need to be reassured through action, not statements that imported cotton does not undercut domestic prices, pointing to the current duty-free import window available until December 31.
Allocation Split
The Textile Ministry’s earlier proposal to use the Mission’s funds for modernizing factories was opposed by the Department of Expenditure and NITI Aayog, sources said. However, the Expenditure Finance Committee has now agreed to allow the Ministry to utilize up to ₹1,100 crore (22 per cent), they added.
The Department of Agriculture and Farmers’ Welfare is likely to receive the largest share over ₹4,000 crore (69 per cent) while ICAR may get less than ₹600 crore (9 per cent) for the Mission’s five-year implementation period.
In her 202526 Budget speech, Finance Minister Nirmala Sitharaman announced the Mission “for the benefit of lakhs of cotton growing farmers,” aimed at driving significant improvements in productivity and sustainability, and promoting extralong staple varieties. She said the initiative, aligned with the government’s 5F vision farm, fiber, factory, fashion and foreign will help raise farmer incomes and ensure a steady supply of quality cotton to revitalize the textile sector.
Yield Challenge
India’s cotton output in 202526 fell for the third consecutive year to 29.22 million bales (170 kg each), down from 29.72 million bales in 202425. Cotton acreage has shrunk by 2 million hectares over the last four years, while average yields remain below 5 quintals per hectare, far lower than the global average of 9 quintals and the US average of 10 quintals.
News Courtesy : Business line