India's Cotton Industry Overview

Cotton Sector in India: Key Highlights

Overview

• Cotton holds a significant position in India's agricultural and industrial economy.
• India is the only country cultivating all four recognized cotton species: Gossypium arboreum, G. herbaceum, G. barbadense, and G. hirsutum.
• India ranks first globally in cotton cultivation area (114.84 lakh hectares), contributing approximately 38% to the global cotton area (304.08 lakh hectares).

Production and Consumption

• Cotton production for 2025-26 (provisional estimate) is projected at 290.91 lakh bales (4.95 million tons).
• Domestic consumption is expected to reach 328 lakh bales (5.58 million tons).
• India contributes about 19% to global fiber production, with cotton being a primary cash crop for around 60 lakh farmers and employing 400-500 million people in processing and trade.

Economic Significance

• Cotton exports reached 18 lakh bales (0.31 million metric tons) in 2024-25, accounting for 3.37% of global exports.
• The export value of cotton in FY 2025 was $11.49 billion, with the USA being the largest importer (26.35% of cotton exports), followed by Bangladesh (19.81%) and Sri Lanka (5.11%).

Government Policies and Schemes

• Minimum Support Price (MSP):

  • MSP for medium staple cotton is set at ₹7,710 per quintal for 2025-26, increasing to ₹8,267 for 2026-27.
  • The Cotton Corporation of India (CCI) manages MSP operations, having expanded its purchase centers from 508 to 571 across 152 districts in 11 states.

• Cotton Productivity Mission:

  • Launched to enhance cotton production to 498 lakh bales by 2031.
  • Funded with ₹5,659.22 crore, focusing on research and development of climate-resistant, pest-resistant, and high-yield varieties.

• National Food Security Mission:

  • A special project to demonstrate suitable technologies for cotton cultivation across eight major cotton-producing states.

• Kasturi Cotton Initiative:

  • A government program aimed at enhancing the value and global position of Indian cotton through traceability and branding, with a budget of ₹30 crore.

Technological Innovations

• Adoption of high-density planting systems and low-spacing planting techniques has shown yield increases of 30-35% in trials.
• The Cotton Farmer App has improved transparency and efficiency in the MSP procurement process, facilitating over 41 lakh farmer registrations.

Environmental and Agricultural Impact

• Cotton farming is predominantly rain-fed (62%), with the remaining 38% under irrigation.
• The sector also contributes to food and animal feed through by-products like cottonseed oil and meal, highlighting its multifaceted economic role.

International Agreements and Trade

• India remains a crucial player in the global cotton market, exporting to diverse international markets and adapting to changing global demands.

Conclusion

The Indian cotton sector exemplifies a blend of tradition and modernity, with ongoing efforts in productivity enhancement, technological adoption, and policy frameworks aimed at sustaining its economic importance. As India continues to innovate and adapt, the cotton industry is positioned to support livelihoods, bolster the textile economy, and enhance its global standing.