India’s cotton story is one of continuity and change. Rooted in centuries of cultivation and trade, the sector continues to evolve through advances in science and technology and targeted policy support. Efforts to improve productivity, strengthen farmer incomes, modernize procurement, and enhance global competitiveness are shaping a more resilient cotton ecosystem.
India ranks first globally in acreage and second in production and consumption. The sector contributes nearly 19 percent of global fibre production. Recent interventions focus on productivity, quality, market access and value addition. MSP operations continue to provide price support during market downturns. The Mission for Cotton Productivity aims to raise output to 498 lakh bales by 2031.
This is the Kind of Topic that NABARD loves to ask in NABARD Grade A Exam. Lets learn each and everything about the Mission For Cotton Productivity scheme and cotton cultivation in India in detail.
Mission for Cotton Productivity
The Union Cabinet approved a Rs 5,659 crore outlay for the “Mission for Cotton Productivity” covering the period 2026–27 to 2030–31.
- The initiative is designed to address stagnant yields, mitigate pest-related challenges, improve quality, and make India self-reliant in cotton production while enhancing competitiveness in global textile markets.
- Despite being the world’s second-largest cotton producer, India faces challenges such as low productivity, pest attacks, climate vulnerability, fragmented landholdings, and poor processing infrastructure, necessitating reforms in irrigation, mechanization, extension services, and sustainable farming practices.
- The Union Budget 2025–26 announced a five-year “Mission for Cotton Productivity” to enhance cotton productivity, quality, and strengthen the textile value chain.
- The mission aligns with the 5F vision (Farm to Fibre to Factory to Fashion to Foreign) of Government of India.
The Mission focuses on enhancing cotton productivity through development of High yielding variety (HYV) seeds resistant to disease and pests, scaling up of existing and latest crop production technologies through states governments, Krishi Vigyan Kendras, and State Agricultural Universities (SAUs) through large-scale promotion and adoption of latest crop production technologies.
Objectives of Scheme:
- Development of High-yielding, climate resilient, pest-resistant seeds, and other production/protection technologies
- Upscaling improved cotton production technologies like High Density Planting System (HDPS), Closer Spacing (CS), Integrated Cotton Management, and promotion of Extra Long Staple (ELS) Cotton
- Augmenting quality of cotton through capacity building and promoting modernization of ginning and processing factories, including adoption of best processing practices.
- Strengthening cotton testing infrastructure across the country with modern, standardized, and accredited facilities to ensure reliable quality assessment and global benchmarking.
- Robust branding and traceability initiatives under Kasturi Cotton Bharat to position Indian cotton as a premium, sustainable, and globally trusted product.
- Empowering farmers through digital integration of market yards (mandis), enabling transparent price discovery, direct market access, and improved realization through e-platforms
- Promotion of cotton waste recycling and circular economy practices to enhance resource efficiency, reduce environmental footprint, and generate additional value streams for the industry
- Diversification of India’s fibre base by including natural fibres like flax, ramie, sisal, milkweed, bamboo and banana and advancement of environmentally sustainable textile production and innovations.
Implementing Agencies: Jointly implemented by the Ministry of Agriculture and Farmers Welfare and the Ministry of Textiles, supported by 10 institutes of the Indian Council of Agricultural Research (ICAR) and the Council of Scientific and Industrial Research (CSIR).
Coverage: The mission will cover nearly 24 lakh hectares across 140 districts in 14 cotton-producing states and is expected to benefit around 32 lakh farmers.
Targeted Outcomes (by 2031):
- Production: Increase total cotton production from current levels to 498 lakh bales.
- Yield: Boost lint productivity from the stagnant 440 kg/hectare to 755 kg/hectare.
- Beneficiaries: Directly improve the socio-economic status of approximately 32 lakh cotton farmers across India.
About Staple Cotton Fibre
- A staple is an individual cotton fibre. Based on the length of the staple, cotton is classified as:
- Very short-staple cotton: ≤21 mm
- Short staple cotton: >22mm and ˂25 mm
- Medium Staple cotton: >26 mm and ˂ 28 mm
- Long staple cotton: >29mm and ˂ 34 mm
- Extra-long staple cotton: ≥34.925 mm
- It is a premium cotton variety cultivated in about 10% of the cotton area, contributing 4% of global production.
- Major ELS Producing states in India: Karnataka, Tamil Nadu, Madhya Pradesh etc.
- Stagnant Productivity: Despite holding the largest acreage globally (~11.4 million hectares, accounting for over 21% of global production), India's lint productivity is heavily stagnant at around 440 kg/ha, far below the global average of ~770 kg/ha.
- For instance, in 2023-24 the cotton yield was 435kg/hectare which is similar to 2024-25's yield of 447kg/hectare.
- Rainfed Crop: Majority cotton area is rainfed, mainly in the Central and Southern States.
- Approximately 67% of India's cotton is produced on rain-fed areas and 33% on irrigated lands.
- Pests Menace: Cotton crop is highly prone to pests and diseases. E.g. Pink Bollworm, Whitefly etc.
- Quality Concerns: High contamination and trash content in traditionally processed Indian cotton have historically reduced its realization value in premium international markets.
- Import Dependency: The domestic textile industry relies heavily on imports for Extra Long Staple (ELS) cotton (primarily from Egypt and the USA) required for high-end garments.
White Gold: India’s Cotton Story
Imagine fields stretching across India where tiny white blossoms slowly turn into soft clouds of fibre under the sun. From these fields begins a journey that threads through spinning mills, handlooms, and finally reaches wardrobes across the world. Cotton is not merely a crop. It is a thread that binds agriculture, industry, and trade into one continuous story.
Cotton is one of the most important commercial crops cultivated in India.
The crop supports the livelihoods of around 6 million cotton farmers. It also sustains employment for another 40-50 million people engaged in related activities such as cotton processing and trade. Beyond clothing, cotton plays a vital role in earning foreign exchange through exports of fibre, yarn, fabrics and garments. Due to its economic importance in India, it is also termed as “White-Gold”.
From Swadeshi to Atmanirbhar Bharat
India’s association with cotton stretches back thousands of years. The subcontinent was once a global centre for cotton textiles, trading its fabrics across Eastern and European markets. In ancient times, cotton cloth even functioned as a medium of exchange. This highlighted its economic value and widespread acceptance.
The modern cotton industry began taking shape in the 19th century with the establishment of textile mills in Kolkata, Mumbai, and Ahmedabad. The latter earned the title “Manchester of India”. Expansion gathered pace in the late 19th and early 20th centuries. The Swadeshi movement promoted the establishment of Swadeshi Mills to contest against British goods. Global demand during the World Wars further boosted the domestic industry. By the mid-20th century, the number of textile mills had risen steadily across the country. This resulted in a significant increase in cotton cloth production in the years leading up to Independence. This reflected the expanding scale and resilience of India’s cotton industry.
The Many Dimensions of India’s Cotton Sector
India is the only country that cultivates all four recognized cotton species. These include G. Arboreum and G. Herbaceum, commonly referred to as Asian cotton. The other species are G. Barbadense, known as Egyptian cotton, and G. Hirsutum, known as American upland cotton. Among these, G. Hirsutum accounts for nearly 90 percent of hybrid cotton production in India. All Bt cotton hybrids currently cultivated in the country belong to this species.
Bt refers to Bacillus thuringiensis, a naturally occurring soil bacterium. Bt cotton is a genetically modified cotton crop that incorporates genes from this bacterium. These genes provide resistance against bollworms, a major pest affecting cotton cultivation. Introduced commercially in India in 2002, Bt cotton significantly reduced bollworm infestation and lowered the need for insecticide sprays. The combined effect of higher yields and reduced pest control costs contributed to improved farm incomes following its adoption.
Cotton production in India is largely concentrated in 9 major states, grouped into 3 distinct agro-ecological zones:
• Northern Zone comprising Punjab, Haryana, and Rajasthan
• Central Zone comprising Gujarat, Maharashtra, and Madhya Pradesh
• Southern Zone comprising Telangana, Andhra Pradesh, and Karnataka
In addition to these states, cotton is also grown in Odisha and Tamil Nadu.
India’s Cotton Strength in Area, Production, and Consumption
India ranks first in the world in cotton cultivation area (in hectares), with 114.84 lakh hectares devoted to the crop. This accounts for around 38 percent of the global cotton area of 304.08 lakh hectares. A large share of the country's cotton production depends on rainfall, with approximately 62 percent grown in rain-fed regions. The remaining 38 percent is cultivated under irrigated conditions.
India ranks second globally in both cotton production and consumption. This shows the scale of its cultivation base and the strength of its textile industry. Cotton production is commonly reported in bales; it is the standard unit used in the cotton trade. One bale is equivalent to 170 kg. During the 2024-25 cotton season, cotton production pegged at 297.24 lakh bales (5.06 million tonnes). This accounts for nearly 20 percent of global cotton output.
For 2025-26 (provisional), cotton production stood at 290.91 lakh bales (4.95 million tonnes). Domestic consumption, including Micro, Small, and Medium Enterprises (MSME), non-MSME, and non-textile segments, stood at 328 lakh bales (5.58 million tonnes). These reflect India’s prominent position in the global cotton economy.
Cotton Exports and India’s Trade Footprint
India continues to maintain a strong presence in the global cotton trade. In 2024-25, the country exported an estimated 18 lakh bales, equivalent to 0.31 million metric tonnes. This accounts for about 3.37 percent of total world exports, amounting to 541.69 lakh bales (9.21 million metric tonnes). This reflects India’s role as a significant exporter in the international cotton market.
Further, India exports cotton to several major global markets, reflecting strong and diversified international demand. In value terms, cotton exports reached US$ 11.49 billion in FY25. The United States of America emerged as the largest destination for Indian cotton fabrics and made-ups exports, accounting for 26.35 percent of cotton exports. This was followed by Bangladesh at 19.81 percent and Sri Lanka at 5.11 percent. Other important destinations included the United Kingdom, with a share of 2.38 percent, and the United Arab Emirates, at 2.32 percent.
Minimum Support Price Operation
Stable returns are essential for sustaining cotton cultivation. The Minimum Support Price (MSP) system serves as a key safeguard for cotton farmers. It ensures remunerative prices when market rates fall below the announced support level. Before each cotton year (Oct. to Sept.), MSP is recommended by the Commission for Agricultural Costs and Prices (CACP). It is announced for Medium Staple and Long Staple varieties of seed cotton (kapas). The objective is to ensure that farmers receive at least 50 percent of their returns on production costs.
Kapas Kisan App
Technology is also being leveraged to make cotton procurement more transparent and efficient. The Kapas Kisan mobile application has been introduced to streamline procurement under the MSP system and place farmers at the centre of the process. The platform enables cotton growers to complete self-registration and book procurement slots on a four weeks rolling basis. This has significantly reduced waiting time and eliminated long queues at procurement centres.
Branding of Indian Cotton - Kasturi Cotton Bharat
Kasturi Cotton Bharat is a flagship initiative of the government. It seeks to enhance the value and global positioning of Indian cotton through traceability, certification, and branding. The programme is implemented in partnership with the Ministry of Textiles, the Cotton Corporation of India Limited, and the Cotton Textiles Export Promotion Council (TEXPROCIL). It has a total outlay of Rs.30 crore, with Rs.15 crore contributed by trade and industry bodies and an equal share from the Ministry of Textiles.
Cotton Beyond the Loom: The Versatility of Cotton
Cotton is far more than a source of fibre for clothing. The crop also generates valuable by-products that contribute to food, feed, and rural energy needs. Raw cottonseed comprises roughly one-third lint and two-thirds seed. The seed contains about 18 percent edible oil, while the remaining meal is widely used as nutritious feed for cattle, poultry, and fish.
Cottonseed oil is often referred to as “heart oil”. It contains nearly 50 percent essential polyunsaturated fatty acids compared to about 30 percent in many traditional oils. This composition is associated with supporting heart health. After oil extraction, the residue is processed into Deoiled cake for animal feed. Other by-products include linters and hulls, while dried cotton stalks serve as biomass fuel in rural areas.
Cotton fibres also have medical applications. Short-staple fibres unsuitable for spinning are processed into absorbent or surgical cotton. These are therefore used in healthcare due to their high absorbency and purity.
