CHENNAI: Escalating tensions between Iran and Israel have begun to impact India’s cotton supply, pushing up prices and putting pressure on spinning mills and textile manufacturers, said a report by Daily Thanthi.
Despite the Centre rolling out special schemes to boost cotton production, output has been declining steadily.
For the current cotton year (October 2025 to September 2026), production is expected to fall to around 29 million bales (1 bale = 170 kg), lower than the past three years.
To bridge the gap, India relies on imports from countries such as the United States, Brazil and South Africa.
However, shipments ordered in January have been delayed due to disruptions linked to the ongoing conflict.
With domestic availability already tight, the delay in imports has further squeezed supply, triggering a sharp rise in prices.
The cost of a cotton candy (356 kg) has increased by Rs 1,000 to Rs 1,500 within a week.
Industry sources warn that the spike has pushed spinning mills and textile units into financial strain.
If the trend continues, yarn prices may also rise, potentially impacting the broader textile sector.