Plagued By Challenges, Indian Cotton Cries For Policy Attention

Policymakers and industry representatives must be equally concerned over the lack of growthin the country’s cotton economy. In recent years, our domestic cotton crop has been grappling with several challenges, including land constraints, water shortage and climate change.

Acreage for cotton crops has stagnated at around 125-130 lakh hectares, and yields have actually declined from the peak of 500 kilograms per hectare to the present, around 425 kg/ha.

Cotton output has turned uncertain in terms of quantity and quality. Production has steadily fallen from 360 lakh bales in 2019-20 to 294 lakh bales in 2024-25. Our raw cotton export has been on a declining trend for the last three years. In 2024-25, India has moved from being a net exporter to a net importer of cotton.

At the same time, the demand for the natural fibre has been rising, boosted by the addition of a new processing capacity (spindles).

The view that the supply and demand fundamentals of cotton are tightening steadily is unmistakable. Import volumes are gathering pace. This raises a serious question. Can India produce enough cotton in the future to remain self-reliant?

The answer is not easy, but surely not out of reach. We must abandon the ‘business-as-usual’ approach and adopt a holistic policy for the cotton sector. The cotton economy is a composite economy. It is labour-intensive and export-intensive.

Cotton is not just fibre but much more—including the seed and its by-products like oil and meal. Indeed, cotton represents 5Fs—fibre, food, feed, fuel and fertiliser.

Its composite nature warrants an ecosystem approach. It involves designing an optimal pathway that balances the economic interests of all stakeholders and, at the same time, advances sustainability principles and practices.

As the planted area is stagnating and possibly nearing a saturation point, the only way to boost cotton production is through vertical growth, that is, by raising yields. To achieve this, intervention at multiple levels is necessary.

As someone closely tracking agriculture for decades, this author proposes the following four big-ticket ideas: technological intervention, boosting genetic research, replicating high-yield area experience in other areas, and promoting contract farming by large user units.

The emphasis should be on research. It is important to remember, “Yesterday’s research is today’s science, and today’s science is tomorrow’s technology.”

Technology: Bt cottonseed is facing a technology fatigue. Pink bollworm has probably acquired resistance, as evidenced by the incidence of pest attacks. We need a conducive policy environment to support tech seeds. Sucking pests are taking a toll. New generation seeds (with stacked genes) are available. Indian seed companies should be encouraged to adopt new tech seeds. Tech seeds by themselves will not raise yields, but they will surely help prevent or reduce yield losses. The crop saved is the crop produced. In cotton promotion, ‘stewardship’ is missing. Industry bodies should work with agricultural universities and Krishi Vigyan Kendras (KVKs) to educate growers about farming practices like high-density planting.

Genetic research: Cotton needs to fight climate change. The answer is climate-smart agriculture, including climate-resilient inputs and scientific agronomy. For the purpose, a conducive long-term policy to encourage firms to spend on R&D is the only alternative. Currently, many private seed firms have reduced their research expenditure because of non-supportive policy or an uncertain policy environment. Seed research is a long-term play. Reduction in the R&D spend is not good for the country and must be reversed.

Replication: While the all-India cotton yield averages around 450 kg/ha, several districts enjoy yields twice the national average. There is something for stakeholders to learn from the experience of high-yield areas—input management, agronomy and so on. Replicating the experience and practices of high-yield areas in low-yield areas will pay dividends.

Contract farming: To reduce dependence on cotton imports and generate a genuine export surplus, large user industries have a moral duty to produce the raw material they need. Contract farming is the way forward. Farmer Producer Organisations, or FPOs, can be good partners for contract farming. It will be a win-win for growers and industrial users. Scientific, well-tested and transparent methodologies to price the output in advance are available.

Strengthening the cotton ecosystem demands ‘political will’ and active participation of the user industry in its own self-interest.

G. Chandrashekhar is an economist, senior editor and policy commentator specialising in global agribusiness and commodity markets. He serves on corporate boards as an independent director. Views are personal.