DAILY NEWS ANALYSIS
29 April, 2026
3 Min Read
Cotton cultivation, once considered a high-value Kharif crop, is increasingly becoming unprofitable for farmers, especially in states like Haryana. This is due to the combined impact of pest resistance, market volatility, and rising input costs.
As a result, many farmers are falling into debt and shifting towards water-intensive crops like paddy, which has serious ecological consequences, including groundwater depletion.To address these challenges, the Union Government has increased the Minimum Support Price (MSP) for cotton for the 2025–26 season and expanded procurement efforts.
About Cotton Cultivation in India
Cotton, often referred to as “White Gold”, is one of India’s most important commercial crops and contributes significantly to the economy. India accounts for about one-fourth of global cotton production.
A major feature of cotton cultivation is that nearly 67% of the area is rain-fed, making it highly dependent on the monsoon, while only 33% is irrigated.
Historically, cotton cultivation in India dates back to the Indus Valley Civilization, and Indian cotton textiles were globally renowned. However, during colonial rule, India was reduced to a supplier of raw cotton for British industries.
Cotton Production in India
India ranks first in the world in terms of cotton acreage, with around 40% of the global area under cotton cultivation.
It is the second-largest producer of cotton, with an estimated production of 343.47 lakh bales (5.84 million metric tonnes) in 2022–23, accounting for 23.83% of global production.
Major Cotton Producing Zones
Northern Zone: Punjab, Haryana, Rajasthan
Central Zone: Gujarat, Maharashtra, Madhya Pradesh
Southern Zone: Telangana, Andhra Pradesh, Karnataka
Cotton Productivity in India
Despite large cultivation area, India ranks 39th in cotton productivity (yield) globally. This is significantly lower than countries such as the United States, China, and Brazil.
Cotton Consumption in India
India is the second-largest consumer of cotton globally, accounting for 22.24% of world consumption (2023).
The domestic textile industry relies largely on indigenous cotton, with less than 10% of total consumption being imported.
Cotton (Scientific Name: Gossypium spp.)
Cotton is a soft, fluffy staple fiber that grows in a boll (protective case) around its seeds. It is a shrub (semi-xerophyte) native to tropical and subtropical regions across the world, including the Americas, Africa, Egypt, and India.
Geographic and Climatic Requirements
Climate
Cotton requires a tropical to subtropical climate, with an optimum temperature range of 21°C to 30°C.
Rainfall
It typically needs 50 to 100 cm of rainfall. However, cotton can also be grown in areas with lower rainfall using irrigation, such as in Haryana and Rajasthan.
Frost-Free Days
Cotton cultivation requires at least 210 frost-free days during the growing period to ensure proper development.
Soil
Cotton grows best in well-drained black cotton soil (Regur soil) found in the Deccan Plateau, which has high moisture-retention capacity.
It also thrives in alluvial soils in North India and red/laterite soils in South India.
Species of Cotton
There are four main species of cotton:
Gossypium arboreum – Asian cotton
Gossypium herbaceum – Asian cotton
Gossypium barbadense – Egyptian cotton
Gossypium hirsutum – American Upland cotton
Cotton Varieties and Hybrids in India
G. hirsutum accounts for 90% of hybrid cotton production in India.
All current Bt cotton hybrids in India are based on G. hirsutum.
Bt cotton, a genetically modified crop, was introduced in 2002 to combat the American bollworm.
Currently, approximately 95% of India’s cotton area is under Bt cotton cultivation.
India is reportedly the only country which grows all four species of cotton.
Bt Cotton (Genetically Modified Cotton)
Bt cotton is a genetically modified (GM) cotton developed by incorporating a gene from the bacterium Bacillus thuringiensis (Bt). This modification makes the plant resistant to major pests, particularly the bollworm, which is a significant threat to cotton yield.
Approval and Commercialization
Bt cotton was approved for commercial cultivation in 2002 by the Genetic Engineering Appraisal Committee (GEAC) under the Ministry of Environment, Forest and Climate Change.
The widely known Bollgard I and Bollgard II technologies were instrumental in developing early Bt cotton varieties.
Recent Developments: Pink Bollworm-Resistant Bt Cotton
The CSIR-National Botanical Research Institute (NBRI) has recently developed the world’s first Pink Bollworm-resistant GM cotton.
CSIR-NBRI engineered a novel insecticidal gene that provides superior resistance to Pink bollworm compared to the traditional Bollgard II cotton.
This new GM cotton also offers protection against other pests, including the cotton leafworm and fall armyworm.
Challenges Associated with Cotton Farming in India
1. Pest-Induced Yield Decline
The Pink Bollworm has developed significant resistance to Bt Cotton since 2014. As a result, cotton yields have fallen drastically from 10–12 quintals per acre to just 3–4 quintals. This resistance has reduced the effectiveness of genetically modified cotton, increasing the risk of crop failure for farmers.
2. Economic Non-Viability
According to the Chaudhary Charan Singh Haryana Agriculture University (CCSHAU) 2025 report, cotton farming has become economically unsustainable. Farmers face average net losses of Rs 15,143 per acre, as total cultivation costs (around Rs 40,024) exceed the gross returns (around Rs 24,882). This financial stress has pushed many farmers into debt.
3. Reduction in Cultivation Area
Data from the Ministry of Agriculture and Farmers Welfare shows that the cotton cultivation area in Haryana has declined from 0.72 million hectares in 2019-20 to 0.40 million hectares in 2024-25. Consequently, Haryana’s contribution to national cotton production fell from 5.36% to 3.47%. This reflects a shift towards alternative crops, especially paddy.
4. Market and MSP Disparity
Cotton farmers often sell their produce at prices well below the Minimum Support Price (MSP), sometimes as much as Rs 1,600 per quintal lower, due to alleged quality issues and the absence of effective government procurement mechanisms. This market failure exacerbates farmers’ financial stress and reduces incentives to cultivate cotton.
5. Shift to Paddy and Ecological Risks
Despite government incentives like ‘Mera Pani-Meri Virasat’, farmers are increasingly switching to water-intensive paddy cultivation, particularly in semi-arid districts such as Sirsa and Hisar. This shift threatens groundwater conservation and contributes to long-term ecological degradation.
6. Terms of Trade (ToT) Imbalance
There is a significant imbalance between the rising costs of inputs such as diesel, seeds, and fertilizers, and the prices farmers receive for cotton. Over the past two decades, the purchasing power of a quintal of cotton relative to essential commodities, including fuel and gold, has declined sharply, making cotton farming less economically attractive.
7. Socio-Economic Displacement
Cotton cultivation is highly labor-intensive, providing employment for women and Scheduled Caste (SC) workers. The shift to mechanized paddy harvesting favors migrant labor, resulting in loss of seasonal employment for local communities and increased rural-to-urban migration.
8. Insurance and Policy Gaps
Farmers insured under the Pradhan Mantri Fasal Bima Yojana (PMFBY) report delays or denials in receiving claims for pest-related crop losses. This policy gap leaves cotton farmers exposed to financial risks, especially during pest outbreaks like the Pink Bollworm.
9. Weather Variability and Climate Risks
Cotton is a climate-sensitive crop, and its productivity is affected by erratic rainfall, droughts, floods, and soil degradation. Rising temperatures and changing monsoon patterns pose long-term risks to the sustainability of cotton cultivation, making it more vulnerable to climate change.
Government Initiatives to Support Cotton Industry in India
The Indian government has implemented multiple initiatives to support cotton farmers, stabilize the market, enhance productivity, and promote technological innovation. These programs aim to secure farmers’ incomes, reduce import dependence, and strengthen the global competitiveness of India’s cotton and textile sector.
1. Cotton Corporation of India (CCI)
Established: 1970 under the Ministry of Textiles as a Public Sector Undertaking (PSU) under the Companies Act, 1956.
Purpose: Ensures fair prices for farmers, stabilizes market fluctuations, and implements Minimum Support Price (MSP) operations effectively.
2. Technology Mission on Cotton (2000)
Focused on improving productivity, quality, and competitiveness of cotton.
Implemented measures such as improved seeds, better irrigation, and modern cultivation technologies.
3. Bt Cotton (2002)
India’s first genetically modified (GM) crop.
Introduced to combat pests like the American Bollworm, enhancing yields and reducing crop losses.
4. Cotton Development Programme under NFSM (2014–15)
Implemented in 15 major cotton-growing states.
Aimed to increase productivity and output through improved agronomic practices and farmer support.
5. National Technical Textiles Mission (2020)
Promotes research, innovation, and value addition in cotton-based technical textiles.
Supports the growth of high-value cotton products for domestic and export markets.
6. Mega Investment Textile Parks (MITRA)
Establishes seven textile parks over three years.
Focuses on boosting investment, infrastructure, and global competitiveness in the cotton and textile sectors.
7. Digital Tools for Farmers
Cott-Ally Mobile App: Provides farmers with real-time information on MSP, procurement centres, payments, and best agricultural practices.
8. Institutional and Advisory Support
Textile Advisory Group (TAG): Coordinates stakeholders on productivity, prices, branding, and policy issues.
Committee on Cotton Promotion and Consumption (COCPC): Ensures availability of cotton to the textile industry and monitors market stability.
9. Branding of Indian Cotton
KASTURI Cotton India: Launched to promote Atmanirbhar Bharat and make Indian cotton globally recognizable.
Encourages self-regulation by industries in traceability, certification, and branding of high-quality cotton.
10. Mission for Cotton Productivity (2025–26 Budget Initiative)
Duration: Five-year mission.
Objective: Enhance productivity, sustainability, and promote extra-long staple (ELS) cotton varieties.
Ministry: Ministry of Textiles.
Key Features:
Provides science and technology support to cotton-growing farmers.
Aligns with the government’s 5F vision for the textile sector: Farmers’ income, Fiber quality, Fashion, Finance, and Future growth.
Ensures steady supply of quality cotton for traditional textile units and MSMEs, which account for 80% of India’s textile capacity.
Aims to reduce import dependence and enhance India’s global competitiveness in textiles.
Steps to Strengthen India’s Cotton Industry
To make cotton cultivation more profitable, sustainable, and globally competitive, several strategic measures can be implemented. These focus on technological innovation, improved management practices, market positioning, and value-chain integration.
1. Accelerating Seed Technology (Next-Gen Bt)
There is an urgent need to approve advanced transgenic varieties, including Bollgard-II RRF (Roundup Ready Flex), to counter Pink Bollworm resistance, which has reduced the effectiveness of older Bt cotton technologies.
These next-generation seeds can improve yields and reduce pest-induced losses.
2. Promoting High-Density Planting System (HDPS)
Transitioning from traditional row spacing to HDPS can significantly increase yield per hectare.
This method allows more plants per acre and is compatible with mechanized harvesting, helping reduce labor costs.
3. Focus on Long-Staple Cotton
India currently imports high-quality extra-long staple (ELS) cotton from countries like Egypt and the US.
Providing incentives for ELS cultivation in the South Zone (Tamil Nadu, Karnataka) can reduce import dependence and enhance competitiveness in premium textile segments.
4. Strengthening the “Kasturi Cotton India” Brand
Enhancing traceability and certification of Indian cotton under the Kasturi brand can help fetch premium prices in the global market.
This will enable India to compete with global varieties such as Pima cotton (US, Peru) and Giza cotton (Egypt).
5. Modernizing Ginning and Pressing (G&P) Units
Much of India’s cotton is contaminated during the ginning process, affecting fiber quality.
Incentivizing upgrades of G&P units with modern pre-cleaning machines is essential to maintain high-quality fiber.
6. Fast-Tracking the PM MITRA Scheme
The PM MITRA scheme should integrate the entire value chain—spinning, weaving, processing, and printing—at a single location.
This will reduce logistic costs and increase operational efficiency for textile manufacturers.
7. Integrated Pest Management (IPM)
Beyond genetically improved seeds, farmers must be trained in IPM practices, including pheromone traps, light traps, and biological control agents such as Trichogramma.
This reduces reliance on chemical pesticides while effectively managing pests like the Pink Bollworm.
8. Digital Integration
Implementing blockchain-based traceability ensures quality certification, transparency, and fair price discovery.
Satellite-based crop area estimation can help farmers and textile mills with better risk management and accurate procurement planning.
Conclusion:
By combining advanced seed technologies, modern cultivation practices, integrated pest management, value-chain optimization, and digital tools, India can strengthen its cotton industry, enhance farmer incomes, reduce import dependence, and position itself as a global leader in premium cotton production.
Source: PIB
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