Prices of raw cotton in India are currently at least 10 to 14 per cent higher than prices in international markets. This disparity is impacting Indian textile industry. Demand slowdown in export markets is another cause of worry for Indian industry, especially textile and apparel exporters.

The industry is therefore looking for proactive support so it can face the twin challenge in the global market. It wants the 11 per cent import duty imposed on cotton to be removed in order to create a level playing field for the domestic industry. Indian cotton is costlier than international cotton, including the Chinese fiber.

Besides this, the industry is also seeking a stimulus package to support the spinning, weaving, fabricating, garmenting and home textiles sectors. In view of the firm trend in prices, which are 20 per cent higher than global rates, the natural fiber consumption will likely be lower. Indian cotton consumption is expected to decline by nearly 27 lakh bales. Arrivals are low as farmers are holding back the produce. Over 125 lakh bales of cotton have been harvested. But hardly 50 per cent of the harvested crop has arrived in the markets. Farmers want prices like last year.