Revitalizing India’s Cotton Sector | 02 Apr 2026

Source: TH 

Why in News? 

The convergence of pest resistance, market volatility, and rising input costs has transformed cotton from a high-value Kharif staple into a loss-making venture for farmers in Haryana. It has pushed farmers into debt and forced a shift to water-intensive paddy with severe ecological consequences. 

What Challenges are Associated with Cotton Farming in India? 

• Pest-Induced Yield Collapse: The Pink Bollworm has developed significant resistance to Bt Cotton (Genetically Modified) since 2014. Yields have plummeted from 10–12 quintals per acre to just 3–4 quintals, rendering the technology largely ineffective. 
• Economic Non-Viability: According to the Chaudhary Charan Singh Haryana Agriculture University (CCSHAU) 'Economics of Kharif Crops 2025' report, cotton farmers face an average net loss of Rs 15,143 per acre. Total cultivation costs (approx. Rs 40,024) now far exceed gross returns (approx. Rs 24,882). 
• Drastic Acreage Reduction: The Ministry of Agriculture and Farmers Welfare data shows a sharp decline in cultivation area from 0.72 million hectares (2019-20) to 0.40 million hectares (2024-25). This reflects a shift in Haryana’s national share from 5.36% to 3.47%. 
• Market & MSP Disparity: Farmers often sell to private players at rates significantly below the Minimum Support Price (MSP)—sometimes Rs 1,600 less per quintal—due to alleged "quality issues" and a lack of effective government procurement. 
• Paddy Shift & Ecological Risk: Despite the ‘Mera Pani-Meri Virasat’ scheme of the Haryana government (offering Rs 8,000/acre incentive to move away from rice), the cotton crisis is driving farmers back to water-intensive Paddy, threatening groundwater conservation in semi-arid districts like Sirsa and Hisar. 
• Terms of Trade (ToT) Imbalance: Farmers highlight a massive gap between input costs (Diesel, Seeds, Fertilizer) and output prices. For instance, the purchasing power of one quintal of grain against gold or fuel has declined drastically over the last two decades. 
• Socio-Economic Displacement: Cotton production is highly labour-intensive, playing a vital role for women and local Scheduled Caste (SC) workers engaged in picking. The shift to mechanized paddy harvesting favors migrant labor, leading to rural-to-urban migration and loss of seasonal livelihood for locals. 
• Insurance & Policy Gaps: Despite paying premiums under the Pradhan Mantri Fasal Bima Yojana (PMFBY), farmers report consistent delays or denials in receiving insurance claims for pest-led crop failures. 

What are the Key Facts Regarding Cotton in India? 

• About: Cotton, often referred to as "White Gold," is one of the most important commercial crops in India, playing a vital role in the agrarian and industrial economy. 
  • India has produced high-quality, world-famous textiles since the Indus Valley Civilization; however, under British rule, India was reduced to supplying raw materials for British textile industries." 
• Geographic and Climatic Requirements:  
  • Climate: Cotton is a tropical and sub-tropical crop. It requires a modest temperature of 21°C to 30°C. 
  • Rainfall: It needs 50 to 100 cm of rainfall. However, it can be grown in areas with less rainfall through irrigation (as seen in Haryana and Rajasthan). 
  • Frost-free Days: A critical requirement for cotton is at least 210 frost-free days during the growing period. 
  • Soil: It grows best in well-drained Black Cotton Soil (Regur Soil) of the Deccan Plateau, which is known for its high moisture-retention capacity. It also grows in alluvial soils (North India) and red/laterite soils (South India). 
• Production and Distribution: India is the world's 2nd largest producer of cotton after China, accounting for about 20% of global production. It also has the largest area under cotton cultivation globally (nearly 40% of global cotton cultivation area). 
  • Major Producing States: Cultivation is divided into three zones: 
    • North Zone: Punjab, Haryana, and Rajasthan. 
    • Central Zone: Gujarat, Maharashtra, and Madhya Pradesh. 
    • South Zone: Telangana, Andhra Pradesh, Karnataka, and Tamil Nadu. 
• Varietal Diversity and Biotechnology:  India is the only country that grows all four cultivated species of cotton on commercial scale i.e., G. Arboreum & G. Herbaceum (Asian cotton), G. Barbadense (Egyptian cotton) and G. Hirsutum (American Upland cotton).  
  • G. Hirsutum represents 90% of the hybrid cotton production in India and all the current Bt cotton hybrids are G. Hirsutuim.  
  • Approximately 95% of India’s cotton area is under Bt Cotton (Genetically Modified). It was introduced in 2002 to combat the American Bollworm. 
• Economic Significance: It provides a livelihood to an estimated 6 million farmers and about 40-50 million people in related processing and trade. 
  • Cotton is a major export earner (India is the 2nd largest cotton exporter after China), with key markets in Bangladesh, China, Vietnam, and Indonesia. 
  • It is the primary raw material for the textile industry, which contributes significantly to India’s GDP and industrial output.  

What Steps Can be Taken to Strengthen India's Cotton Industry? 

• Accelerating Seed Technology (Next-Gen Bt): There is an urgent need to approve Bollgard-II RRF (Roundup Ready Flex) and other advanced transgenic varieties to counter Pink Bollworm resistance that has rendered older Bt technologies ineffective. 
• Promoting High-Density Planting System (HDPS): Transitioning from traditional spacing to HDPS can significantly increase the yield per hectare. This method allows for more plants per acre and is highly compatible with mechanical harvesting, reducing labour costs. 
• Focus on Long-Staple Cotton: India currently imports high-quality extra-long staple (ELS) cotton from Egypt and the US. Providing incentives for ELS cultivation in the South Zone (Tamil Nadu/Karnataka) can reduce import dependency. 
• Strengthening the "Kasturi Cotton India" Brand: Enhancing the traceability and certification of Indian cotton under the "Kasturi" brand will help fetch a premium price in the global market, competing with Pima (United States, Peru, etc.) or Giza (Egypt) cotton. 
• Modernizing Ginning and Pressing: Much of India's cotton is contaminated during the ginning process. Incentivizing the upgrade of Ginning & Pressing (G&P) units with modern pre-cleaning machines is essential for maintaining fiber quality. 
  • The PM MITRA scheme should be fast-tracked to integrate the entire value chain—spinning, weaving, processing, and printing—at a single location to reduce logistic costs. 
• Integrated Pest Management (IPM): Beyond seeds, farmers must be trained in Pheromone Traps, light traps, and biological control agents (like Trichogramma) to manage the Pink Bollworm without excessive chemical use. 
• Digital Integration: Implementing Blockchain-based traceability and satellite-based crop area estimation can help in better price discovery and risk management for both farmers and textile mill owners. 

Conclusion 

The Indian cotton sector stands at a crossroads where technological fatigue meets economic instability. Revitalising "White Gold" requires a shift from subsistence-based farming to high-tech, high-density systems (HDPS). By bridging the yield gap and ensuring price parity, India can safeguard both its groundwater and its status as a global textile powerhouse.