New Delhi, May 7 -- Falling domestic cotton production, rising minimum support prices (MSP) and import duties have pushed Indian cotton prices above international benchmarks, hurting the competitiveness of the country's textile industry, according to a study released by the Confederation of Indian Textile Industry (CITI) on Thursday.

Among other recommendations, it called for the withdrawal of import duty on cotton, the creation of a strategic cotton reserve, and measures to improve productivity and price stability. It also suggested that the Cotton Corporation of India (CCI) be empowered to supply cotton to mills at internationally competitive prices.

The study, prepared jointly with Gherzi Textile Organisation (a Swiss consultancy and...