SALIENT FEATURES OF THE CAI PRESIDENT’S ADDRESS AT 104TH AGM OF THE ASSOCIATION

MUMBAI, 30 SEPTEMBER: The Cotton Association of India (CAI), at its 104^th Annual General Meeting held in Mumbai on 29^th September 2026, reviewed the developments in the Indian cotton sector and highlighted the Association’s key initiatives and achievements during the year. Addressing the AGM, Shri Vinay N. Kotak, President, CAI, said that the current cotton season had been positive, by and large, for stakeholders across the value chain, from farmers and ginners to traders and spinners. He expressed optimism about the future of Indian cotton, particularly in view of the new market opportunities expected from the Free Trade Agreements concluded by the Government, which could generate additional demand for Indian textiles and cotton products.

India remains an important player in the global cotton economy, being the world’s second-largest cotton producer and consumer and accounting for around 20% of global fibre production. The President emphasised that improving cotton productivity, quality, contamination control, traceability, sustainability, price discovery and risk management would be critical to enhancing the competitiveness of Indian cotton.

CAI Roadmap and Policy Advocacy: During the year, CAI strengthened its engagement with the Government and other stakeholders through its newly developed CAI Roadmap, providing a structured framework for policy advocacy.

CAI pursued several important issues, including MSP-related matters, removal of Reverse Charge Mechanism (RCM) on purchase of cotton from farmers, and other issues affecting the cotton value chain.

CAI also advocated examination of a Bhavantar-type mechanism as an alternative or complementary approach to the existing MSP framework, with the objective of providing effective price support to farmers while allowing market forces to operate more efficiently.

A significant development was the removal of import duty on cotton from 1 June to 31 October 2026, following representations made by CAI along with stakeholders across the cotton value chain. CAI also welcomed the Government’s withdrawal of the Cotton Bales (Quality Control) Order (QCO) with effect from 9 June 2026.

The issue of RCM on kapas continues to be pursued. CAI led a delegation of ginners to the GST Council Secretariat in Delhi and continues to engage with the authorities for a practical solution addressing the concerns of the cotton value chain.

The President also welcomed the constitution of a Committee under the Chairpersonship of the Textile Commissioner to formulate a scientific methodology, institutional framework and operational mechanism for assessment of cotton demand and to identify suitable research and technical agencies for studying various aspects of the cotton value chain.

International Cooperation and Market Development: CAI renewed its Memorandum of Understanding with the International Cotton Association (ICA) and organised ICA Outreach Programmes at Ahmedabad and Coimbatore, bringing international expertise and perspectives closer to Indian cotton stakeholders.

CAI is also working towards an MOU with ABRAPA, Brazil, with the objective of facilitating cooperation and exchange of knowledge in areas such as productivity, sustainability, traceability and international cotton trade.

The Association has entered into a Letter of Engagement with NCDEX to strengthen cooperation in cotton futures, price discovery, hedging and risk management.

Work is also progressing on the proposed India Cotton Index, which is envisaged as a credible and representative benchmark for Indian cotton, providing greater transparency and supporting informed commercial decision-making.

Strengthening Laboratories and Cotton Quality: CAI has undertaken substantial upgradation of its laboratories and established the CAI Cotton Contamination Estimation Laboratory in Mumbai, a specialised facility for identification and assessment of cotton contamination.

The initiative is aimed at strengthening cotton quality, improving marketability and supporting the broader objective of making Indian cotton more consistent, reliable and internationally competitive.

Farmer-Centric Initiatives: Recognising that the farmer is at the centre of the cotton value chain, CAI continued to expand its field-level engagement. Pheromone traps and lures were distributed to farmers in Dondaicha for early detection of pink bollworm infestation, while neem seed oil was promoted in Chopda as an eco-friendly bio-pesticide.

Farmer awareness and training programmes were also conducted, and CAI has conceptualised the Mobile Krishi School to take scientific knowledge and practical training directly to cotton-growing areas.

CAI also plans to work with the Government on a structured cotton productivity project, initially focusing on Maharashtra, with the objective of improving productivity and farmer incomes.

Knowledge and Capacity Building: The Learn with CAI initiative was another important development during the year. Basic and Advanced programmes on cotton quality assessment and advanced marketing tools were conducted, receiving an encouraging response. CAI intends to develop the initiative as a sustained platform for knowledge-sharing, skill development and dissemination of best practices across the cotton value chain.

Way Forward: Looking ahead, CAI’s priorities will include improving cotton productivity and farmer incomes, enhancing cotton quality and reducing contamination, promoting scientific and sustainable cultivation, strengthening market intelligence and risk-management mechanisms, expanding international cooperation, developing professional capacity through Learn with CAI, and continuing constructive, evidence-based policy advocacy.

Shri Kotak emphasised that CAI’s strength lies in bringing together farmers, ginners, traders, brokers, exporters, importers, textile mills, researchers, scientists, Government institutions and other stakeholders. He called for continued collective efforts to build a more productive farmer, better quality cotton, a stronger cotton value chain and a more competitive India in the global cotton economy.

Appointment of New Office Bearers for the Year 2026-27

the following office bearers have been appointed for the year 2026-27.

At the meeting of the Board of Directors of the Cotton Association of India held on Tuesday, the 29^th September 2026, the following office bearers have been appointed for the year 2026-27.

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