India has backed calls for a balanced outcome on cotton at the World Trade Organization (WTO), saying issues such as domestic support, market access and development assistance need to be addressed together. India also reiterated that it already offers duty-free access for cotton imports from least-developed countries.
In contrast, major players including the United States and the European Union said any decision on cotton should be part of a broader agreement on agricultural reform, and not a separate one.
These positions were discussed during the 24th Dedicated Discussion on Cotton under the WTO Committee on Agriculture, held in November 2025 and formally reported by the WTO Secretariat on 21 January, as members intensified consultations ahead of the 14th WTO Ministerial Conference (MC14) scheduled for later this year in Cameroon.
The discussions highlighted why cotton remains a sensitive issue in global trade talks, as it is a key livelihood crop supporting millions of small farmers in countries across Africa and parts of Asia. At the same time, it remains one of the most heavily subsidised agricultural commodities, mainly by large producing nations, according to a WTO paper reviewed by Mint.
‘Critical for livelihoods’
As per the WTO document, India told members that cotton remains critical for livelihoods and rural development in developing and least-developed countries (LDCs), and that progress on the issue has been limited despite long-standing mandates dating back to the Bali and Nairobi ministerial decisions. It highlighted that India provides duty-free access on all cotton tariff lines and covers 98.2% of tariff lines for imports from LDCs, while calling for sharper discipline on trade-distorting subsidies provided by major producers.
The development is significant as India is the world’s second-largest cotton producer, accounting for around a quarter of global output, with the crop grown on about 13 million hectares and supporting nearly 60 million people.
India’s cotton production has seen year-on-year fluctuations in recent seasons. Total cotton output in the 2024-25 season was 29.4 million bales (170 kg each), lower than 33.6 million bales in 2022-23 and 31.1 million bales in 2021-22. Total cotton availability, including opening stocks and imports, was at 35.74 million bales up to the end of the 2024-25 cotton season on 30 September 2025.
Cotton exports for the 2024-25 crop year are estimated at about 1.8 million bales, reflecting relatively subdued overseas shipments amid tighter domestic supply and global market volatility, according to an India Brand Equity Foundation report.
India’s total cotton demand stood at 35.45 million bales in FY24 and declined marginally to 33.60 million bales in FY25, according to an estimate by the textiles ministry in March 2025.
Data presented by the International Cotton Advisory Committee (ICAC) showed global cotton production in 2025-26 is projected at around 25.4 million tonnes, with China accounting for about 25% of output, followed by India, Brazil and the United States.
US, EU opposition
While African countries pushed for a standalone cotton outcome at MC14, the US maintained that any agreement must be embedded in a comprehensive agricultural reform package, warning against piecemeal decisions. The EU echoed a cautious approach, urging pragmatism and consensus-based outcomes, even as it acknowledged the urgency of addressing cotton-related distortions, the WTO paper stated.
Trade experts said the debate on cotton at the WTO has emerged as a litmus test for whether the MC14 can deliver any meaningful outcomes for developing and least-developed countries.
“Cotton is one of the few issues with a long-standing and explicit development mandate under the WTO, dating back to the Hong Kong ministerial and reinforced at the Bali and Nairobi ministerials. Even limited progress on cotton would signal that MC14 can address core development concerns instead of remaining stalled by wider disagreements over agricultural reform,” said Abhash Kumar, a trade expert.
The MC14 is scheduled to take place from 26-29 March in Yaoundé, Cameroon. The WTO is a multilateral organisation that governs the rules of international trade between countries. It currently has 164 member countries, representing over 98% of global trade.
