Government to Increase MSP Cotton Procurement to Support Farmers Amid US Tariffs

Centre to Ramp Up MSP Cotton Purchases to Shield Farmers Amid US Tariffs.

The Centre will boost cotton purchases at the minimum support price (MSP) to protect farmers from falling local rates, following a duty waiver on imports to support the apparel sector amid Trump’s 50% tariff.

Farmers have been hit as textile manufacturers opt for cheaper imported fibre. To address this, the Cotton Corporation of India (CCI) has been instructed to buy as much cotton as farmers bring to its procurement centres. For 2025–26, the MSP for medium-staple cotton is set at ₹7,710 per quintal, compared with imported fibre costing ₹5,000–6,200 per quintal.

India’s domestic cotton production has fallen to a 15-year low of 25 million bales, while imports rose to 2.71 million bales in 2024–25. The CCI plans to expand procurement centres to over 500 to support growers.

Lalit Kumar Gupta, CCI Managing Director, said: “We are ready to buy as much as farmers want us to. The CCI is here to help cotton growers.”