The Cotton Association of India (CAI) expects FTAs to boost demand for Indian textiles and cotton by opening new international markets.

CAI President Vinay N Kotak said the Free Trade Agreements (FTAs) concluded by the government could create new opportunities for Indian cotton and textile products.

Speaking at CAI’s 104th Annual General Meeting, Kotak said the current cotton season has been broadly positive for farmers, ginners, traders and spinners.

FTAs to open new cotton markets

India is the world’s second-largest cotton producer and consumer. It accounts for around 20% of global fibre production.

According to CAI, new trade agreements can support exports and expand the global market for Indian cotton products. This could also create additional demand across the textile value chain.

However, CAI said India must improve cotton productivity and quality to strengthen its global competitiveness. Better contamination control, traceability and sustainability will also be important.

CAI outlines cotton roadmap

CAI has developed a roadmap to guide policy discussions and address key issues across the cotton value chain.

The association has raised issues related to minimum support prices, the Reverse Charge Mechanism on cotton purchases from farmers and other policy matters.

CAI is also examining a Bhavantar-type mechanism as an alternative or complement to the existing MSP system. The aim is to provide price support while allowing market forces to work more efficiently.

Meanwhile, work is progressing on the proposed India Cotton Index. The benchmark is expected to improve price transparency and support better commercial decisions.

Focus on productivity and sustainability

CAI is also working towards an MoU with Brazil’s ABRAPA. The proposed cooperation will cover productivity, sustainability, traceability and international cotton trade.

Going forward, CAI plans to focus on higher cotton productivity, better farmer incomes, improved quality and lower contamination.

The association also aims to strengthen market intelligence and risk-management systems. These measures, along with new FTAs, could support India’s position in the global cotton and textile market.