India's Cotton Sector Overview and Strategic Initiatives

India occupies a unique position in the global cotton economy, being the only country cultivating all four recognized cotton species (G. Arboreum, G. Herbaceum, G. Barbadense, and G. Hirsutum), with G. Hirsutum accounting for nearly 90% of hybrid cotton production. The sector contributes approximately 19% of global fibre production and 23% of global fibre production, supporting livelihoods of 6 million cotton farmers and employment for 40-50 million people in related activities.

Production and Consumption Metrics

India ranks first globally in cotton cultivation area with 114.84 lakh hectares (38% of global cotton area of 304.08 lakh hectares), with approximately 62% grown in rain-fed regions and 38% under irrigated conditions. For 2025-26 (provisional), cotton production stood at 290.91 lakh bales (4.95 million tonnes), while domestic consumption reached 328 lakh bales (5.58 million tonnes) including MSME, non-MSME, and non-textile segments. In the previous 2024-25 season, production was pegged at 297.24 lakh bales (5.06 million tonnes), accounting for nearly 20% of global cotton output.

Export Performance and Trade Patterns

India exported an estimated 18 lakh bales (0.31 million metric tonnes) in 2024-25, representing approximately 3.37% of total world exports of 541.69 lakh bales (9.21 million metric tonnes). In value terms, cotton exports reached US$ 11.49 billion in FY25. The United States emerged as the largest destination with 26.35% share of cotton exports, followed by Bangladesh (19.81%), Sri Lanka (5.11%), United Kingdom (2.38%), and United Arab Emirates (2.32%).

Policy Interventions and Support Mechanisms

The Minimum Support Price (MSP) system serves as a key safeguard, with MSP for 2025-26 fixed at Rs. 7,710 per quintal for medium-staple cotton and Rs. 8,110 per quintal for long-staple cotton. For 2026-27, this was increased to Rs. 8,267 per quintal for medium-staple and Rs. 8,667 per quintal for long-staple cotton, marking an increase of Rs. 557 per quintal for both varieties. During Cotton Season 2025-26, Cotton Corporation of India Ltd. (CCI) procured 105.09 lakh bales valued at Rs. 41,530 crore through 24 lakh procurement transactions across 571 procurement centers in 152 districts covering 11 cotton-growing states.

Mission for Cotton Productivity

A five-year Mission for Cotton Productivity was launched in 2025-26 with provision of Rs. 5,659.22 crore to strengthen cotton production nationwide. The mission focuses on research, innovation, and field-level extension support to develop climate-resilient, pest-resistant, and high-yielding cotton varieties, with special emphasis on Extra Long Staple (ELS) cotton. The initiative will cover nearly 24 lakh hectares across 140 districts in 14 cotton-producing states and is expected to benefit around 32 lakh farmers. The mission targets increasing cotton production from 297 lakh bales to 498 lakh bales by 2031.

Technology Adoption and Field Demonstrations

Under the Special Project on Cotton implemented under National Food Security Mission (NFSM), field demonstrations recorded yield gains of about 40% under High-Density Planting System (HDPS) and more than 32% under closer spacing planting system. The project allocation increased from Rs. 41.87 crore covering 9,175 hectares in 2023-24 to Rs. 50.98 crore supporting 14,740 hectares in 2024-25, and further to Rs. 60.32 crore for 2025-26. Specific success stories include a farmer in Rajkot, Gujarat achieving 15 quintals per acre with 30-35% productivity increase, and a farmer in Jalgaon, Maharashtra recording 11 quintals per acre compared to 8 quintals under traditional practice.

Digital Initiatives and Quality Enhancement

The Kapas Kisan mobile application has registered over 41 lakh farmers, enabling self-registration, advance slot booking on a four-week rolling basis, Aadhaar-linked payments, and real-time SMS updates. The Kasturi Cotton Bharat initiative with total outlay of Rs. 30 crore (Rs. 15 crore from trade/industry and Rs. 15 crore from Ministry of Textiles) has certified 3,29,550 bales including 3,22,400 bales from CCI. The program focuses on long-staple cotton (28mm+) and ELS cotton (35mm+) tested by NABL-accredited agencies, utilizing QR-based certification and blockchain technology for end-to-end traceability. Currently, 116 units including 41 ginners and 75 supply chain members have renewed registration.

By-Products and Additional Applications

Cotton generates valuable by-products with raw cottonseed comprising one-third lint and two-thirds seed, containing about 18% edible oil. Cottonseed oil contains nearly 50% essential polyunsaturated fatty acids compared to 30% in traditional oils. The residue is processed into Deoiled cake for animal feed, while other by-products include linters, hulls, and dried cotton stalks serving as biomass fuel. Short-staple fibres are processed into absorbent or surgical cotton for healthcare applications.