The Centre has begun the groundwork for launching a National Cotton Productivity Mission, with discussions underway to chart out a strategy focused on crop diversification, yield improvement, introduction of new seed varieties, and promoting mechanised farming, two officials said.
These measures are aimed at revitalising India’s cotton economy amid inconsistent yields.
India’s cotton output dropped from about 33.7 million bales in 2022-23 to 32.5 million bales in FY24 and an estimated 30.7 million bales in FY25, according to the agriculture ministry data. (One bale is 170 kg of cotton; a full cotton year runs from October through September.)
Also, India’s cotton yield, at around 465 kg per hectare in FY25, remains far below China’s average of over 2,170 kg/ha.
According to the US department of agriculture, China is the world’s largest producer of cotton, with its 32 million bales in 2024/2025 accounting for 26% of global production. India stood second with its 25 million bales accounting for 21% of global cotton production.
As part of the five-year mission to improve India’s cotton productivity, the textiles ministry, in coordination with the agriculture and farmers’ welfare ministry, has started consultations with agricultural experts, farmer groups, and state governments to devise a comprehensive strategy.
“To stop the decline (in India’s cotton production), discussions are being held to finalise a plan that includes crop diversification, better yields, new seed varieties, and more use of machines in farming. This is the first formal step toward starting the long-awaited mission to revive India’s cotton economy, which has been under pressure due to falling production,” said the first of the two officials mentioned above.
“We are aiming to double the yield from 465 kg/ha to 1,000 kg/ha across 11 states under the upcoming National Cotton Productivity Mission,” said the second official. “The mission will address core structural issues across the cotton value chain, especially at the farm level,” this official said, adding that improved access to modern machinery and high-quality seeds will be central to the plan.
Lower yields have naturally spiked cotton prices, which have increased from ₹7,100-7,500 per quintal (or 100kg) in 2024 to ₹7,600-7,900. “At this price, it’s not viable to continue operations as it makes the business unviable. Ultimately, it will lead to closure of spinning mills,” said Sukhdev Singh, a spinner based in Punjab.
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Making Indian cotton viable again
The National Cotton Productivity Mission is still in its early planning stage, and further rounds of consultations with major cotton-growing states are expected in the coming weeks. A detailed implementation roadmap, including timelines and funding mechanisms, is likely to be developed after these consultations conclude.
India’s major cotton-growing states are Maharashtra, Gujarat, Telangana, and Andhra Pradesh.
The government’s move to improve the country’s cotton productivity is timely and critical for export-led growth, said Prabhu Dhamodharan, convenor, Indian Texpreneurs Federation.
“Nearly 60-65% of our apparel exports are cotton-based, and India has a clear opportunity to scale up in global markets. However, with the minimum support price (MSP) being raised year after year to support farmers facing poor yields, Indian cotton has become more expensive than that of competing countries,” Dhamodharan said.
“The only sustainable way forward is to improve yield. We hope the Union government’s cotton mission will address this gap and make Indian cotton viable both for farmers and exporters,” Dhamodharan added.
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As per commerce ministry data, India’s export of cotton yarn increased from $10.94 billion in FY23 to $11.68 billion in FY24 and $12.04 billion in FY25. Major export destinations for Indian cotton are the US, Bangladesh, Sri Lanka, the UK, the UAE, Germany, China, and Egypt.
But cotton imports too have been rising sharply—from about 1.46 million bales in FY23 to 1.52 million in FY24 and 2.15 million during October-March FY25, as per textiles ministry data.
Farmers have been demanding better technology to improve yields.
“We are still sowing the BG2 variety of cotton while other countries have moved ahead and adopted BG3 and BG4 varieties with higher yield potential,” said Ganesh Nanote, a cotton farmer in Maharashtra’s Vidarbha region. “Unless farmers get access to better seeds and improved farming practices, yields are not going to improve.”
The sharp drop in India’s cotton production is also affecting the ginning industry, which separates cotton fibers or lint from their seeds and other impurities.
“The lower productivity has cast a shadow over the future of ginning and spinning mills,” said Bhagwan Das Bansal, former president of the Punjab Cotton Factory and Ginners Association. “Our ginning season starts from 1 October to 31 May. But due to inadequate supply of cotton, a majority of the mills stopped ginning operations in February only.”
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