Cotton Sector

The Union Government has taken significant steps to support the cotton sector in India, addressing key challenges related to rising imports, farmer welfare, and low domestic production. These measures include:

• Extension of 11% Import Duty Waiver on cotton to curb rising imports.

• Increase in Minimum Support Price (MSP) for cotton for the 2025-26 season.

• Expansion of procurement efforts to provide better support to farmers dealing with price pressures.

This move is crucial in stabilizing both farmer welfare and the textile industry, especially at a time when domestic cotton production has dropped to a 15-year low.

Cotton Cultivation in India: Overview

Cotton, often referred to as "White Gold", is one of India’s most important commercial crops, contributing about 24% of the global cotton output. Despite this, India faces several challenges in cotton production, which are compounded by weather variability, low productivity, and high input costs.

Growing Conditions & Climate Needs

Cotton is a subtropical crop that thrives in warm, sunny, and frost-free climates. It requires adequate humidity and grows well in diverse soil types, including alluvial, black clayey, and red-black mixed soils across different regions of India. Cotton cultivation primarily depends on monsoon rains, with nearly 67% of cotton farms being rain-fed.

Cotton Varieties:

• Hybrid Cotton: Produced by crossing two parent varieties with different traits, often to enhance yield and pest resistance.

• Bt Cotton: A genetically modified variety that provides resistance to common pests like bollworms. However, the effectiveness of Bt Cotton is now in question due to pests evolving resistance.

Global Ranking:

• India is the second-largest producer and consumer of cotton after China.

• Despite having the largest cotton-growing area in the world, India ranks only 36th in terms of productivity, with an average yield of 480 kg/ha (compared to the world average of 800 kg/ha).

Key Challenges Facing the Cotton Sector in India

1. Weather Variability & Climate Risks:
   Cotton cultivation is highly sensitive to climate change, with erratic rainfall patterns, droughts, and floods causing significant disruptions in yields.

2. Low Yield & Outdated Farming Practices:
   Many Indian farmers still rely on traditional, low-tech farming methods, leading to low productivity and poor-quality cotton. There’s also a lack of access to modern farming techniques and certified seeds.

3. Pest & Disease Infestations:
   The Pink Bollworm and other pests, combined with fungal infections, have severely affected cotton yields. These infestations have contributed to a 15-year low in cotton production, which is further exacerbated by the reduced effectiveness of Bt Cotton.

4. High Cost of Cultivation:
   The rising cost of inputs like seeds, fertilizers, and pesticides has made cotton farming economically unsustainable, especially for small and marginal farmers. Additionally, the influx of cheaper imports further pressures the market.

5. Market Challenges:
   Farmers often face restricted market access and are forced to sell cotton at prices below MSP. Global factors, like tariffs and duties, also affect their export competitiveness.

Government Initiatives to Support the Cotton Sector

The Indian government has introduced several measures to address the challenges in the cotton sector:

1. Cotton Corporation of India (CCI): Works to ensure fair prices for farmers and stabilize market fluctuations.

2. Technology Mission on Cotton (2000): Focuses on improving productivity, quality, and competitiveness in cotton farming through modern technologies and better seeds.

3. Bt Cotton (2002): India became the first country in Asia to approve Bt Cotton for commercial cultivation.

4. National Cotton Mission (2014–15): Launched to increase productivity in major cotton-growing states.

5. Mega Investment Textile Parks (MITRA): Establishing textile parks to boost investment and infrastructure in cotton-linked industries.

6. Cott-Ally Mobile App: A tool to provide farmers with real-time information on MSP, procurement centers, and best farming practices.

Measures to Boost the Cotton Industry

To sustain and enhance the cotton sector, several strategies could be adopted:

1. Integrated Pest & Crop Management (IPM):

   • Encourage IPM to reduce pesticide dependency and promote sustainable pest management practices.

   • Approve pest-resistant GM hybrids, such as those resistant to whiteflies and pink bollworms.

2. Bridging the Yield Gap:

   • Adopt practices like High-Density Planting Systems (HDPS) and focus on developing extra-long staple varieties to improve yield and reduce dependence on imports.

   • Expand initiatives like the Mission for Cotton Productivity, aimed at higher yields and sustainability.

3. Modernization & Infrastructure Development:

   • Invest in modernizing ginning, spinning, and weaving units through the Technology Upgradation Fund Scheme (TUFS) and MITRA.

   • Encourage the establishment of cotton-linked clusters to boost global competitiveness.

4. Extension & Farmer-Centric Services:

   • Improve agricultural extension services through initiatives like Krishi Vigyan Kendras (KVKs) and CCI.

   • Scale platforms like the Cott-Ally App to provide real-time updates on market prices, weather, and procurement logistics.

5. Branding & Global Competitiveness:

   • Promote Kasturi Cotton, a quality certification with QR-code traceability, to build a distinct identity and attract premium prices in global markets.

Conclusion

Cotton is a key driver of India’s agriculture, industry, and trade. However, it faces persistent challenges like low yields, climate risks, pests, and market pressures. Strengthening MSP operations, adopting modern farming practices, and improving infrastructure will be critical for boosting production, ensuring farmer welfare, and enhancing India’s global cotton competitiveness.