Addressing yield challenges in rain-fed cotton growing regions, Cotton Association of India (CAI) has urged the government to grant funds worth Rs 500 crore to help farmers implement drip irrigation systems.

Speaking at the association’s annual general meeting, Atul Ganatra, President, CAI highlighted, around 67 per cent of India's cotton production relies on rainfall, leading to inadequate water supply during critical flowering and fruiting stages.

This yield disparity between rain-fed and irrigated areas is particularly pronounced in Maharashtra, where approximately 95 per cent of cotton cultivation depends on rainfall.

Similar challenges affect cotton-growing regions in Madhya Pradesh, Andhra Pradesh, Tamil Nadu, Karnataka, and Gujarat. The proposed drip irrigation technology could potentially save 40-60 per cent of water compared to traditional flood irrigation methods.

The association has also called for the removal of import duties, including 5 per cent Basic Customs Duty, 5 per cent Agriculture Infrastructure Development Cess, and 1 per cent Social Welfare Charge, being implemented since 2021-22, to facilitate more affordable cotton imports.

CAI estimates, from 12.68 million hectare in the previous year, cotton acreage in India is expected to decline by over 10 per cent to 11.36 million hectare during 2024-25.

Combined with excessive rainfall damage in major growing regions, this reduction is likely to cause a 7.70 percent decline in production to 30.22 million bales, compared to 32.74 million bales last year.

As per CAI forecasts, from 1.52 million bales last year, India’s cotton imports are likely to rise to 2.5 million bales in 2024-25, while exports are expected to decline to 1.8 million bales from 2.83 million bales.

Reflecting a global price reduction of 13-15 per cent, India’s cotton prices declined from 2.54 to 3.5 per cent.