Cotton 2.0: India’s mission for a stronger, smarter harvest

The Indian government has launched a five-year mission to boost cotton productivity, focusing on extra-long staple cotton, improved fiber quality, and revitalizing the textile industry. With goals like achieving 1,000 kg yield per hectare through techniques like High-Density Planting System (HDPS), the initiative aims to bridge the productivity gap with global leaders.

Key strategies include introducing climate-resilient seed varieties, expanding crop insurance under PMFBY, and promoting Kasturi Cotton as a premium global brand. This comprehensive approach seeks to reduce import reliance, strengthen exports, and ensure better incomes for farmers.

cotton farm

Finance Minister Nirmala Sitharaman has introduced a five-year initiative to boost cotton productivity, providing crucial support to farmers grappling with low yields. The mission focuses on increasing the production of extra-long staple cotton, enhancing fiber quality, and revitalizing India’s textile industry. This announcement was made as part of the Union Budget for FY26, presented on February 1, 2025. Given that cotton plays a central role in India’s agrarian economy and textile sector, the initiative is expected to have great benefits.

Union Minister Giriraj Singh announced in October 2024 that the government has set a target of achieving 1,000 kg of cotton yield per hectare across 11 major cotton-producing states. This ambitious goal will be pursued by replicating the High-Density Planting System (HDPS) successfully used in Akola, Maharashtra. The HDPS technique involves planting more cotton plants in a smaller area, significantly improving yields. By adopting this method, the government aims to bridge the gap with global leaders such as China, Australia, and Brazil, where cotton yields range from 2,000–2,200 kg per hectare.

To achieve this goal, the Cotton Corporation of India (CCI) has been tasked with identifying one district in each state for cotton productivity trials. These trials will allow for the implementation of best practices and provide valuable insights into the effectiveness of high-yield strategies before broader adoption.

Cotton being one of the India’s most significant fiber and cash crops, supports the livelihoods of nearly 40–50 million people engaged in its cultivation, processing, and related industries. As the backbone of the cotton textile industry, it plays a crucial role in both agricultural and industrial sectors, contributing significantly to employment and exports.

India leads the world in terms of cotton production, with 120.69 lakh hectares under production. However, only 33% of this area is irrigated, while 67% relies on rainfall, making cotton crops vulnerable to erratic weather patterns. Despite being the largest producer globally, India ranks 38th in productivity, with an average yield of just 510 kg per hectare—far below international benchmarks.

Challenges in Cotton Farming

Cotton farming presents considerable challenges due to its high water consumption and environmental impact. In India, where water scarcity is a major concern, cotton farmers struggle with low yields and financial instability as the crop demands significant water resources. Producing just one kilogram of cotton requires approximately 7,000 to 10,000 liters of water—the equivalent of making a single t-shirt and a pair of jeans—placing immense strain on water supplies, particularly in arid and semi-arid regions. Globally, cotton farming covers only 2.6% of cultivated land yet consumes up to 10% of the world’s agricultural water. To mitigate these issues, adopting more efficient irrigation techniques is essential for improving sustainability and securing farmers’ livelihoods. Efficient irrigation methods and drought-resistant varieties can help optimize water use.

A major challenge in cotton farming is also the growing resistance of pests to genetically modified crops. The introduction of BT cotton initially brought significant benefits, such as reducing insecticide use and doubling yields. Today, more than 80% of Indian cotton farmers depend on BT cotton. However, pests like the pink bollworm have developed resistance, reducing its effectiveness and threatening productivity. This growing resistance underscores the need for integrated pest management strategies and more sustainable farming practices to protect yields and ensure long-term viability.

Moreover, continuous cotton cultivation depletes soil nutrients, reducing productivity. Another major challenge is outdated farming techniques that hinder cotton yields and fiber quality. Limited access to modern practices results in inefficient planting, poor pest control, and lower productivity. Additionally, a growing labor shortage in agriculture exacerbates these issues, making it harder for farmers to manage labor-intensive tasks like planting and harvesting. Providing training programs, improved mechanization, and access to high-quality seeds can help enhance yields, address labor constraints, and benefit both farmers and the cotton industry.

Climate change poses a growing threat, bringing extreme weather events that disrupt crop growth. Climate-resilient cotton varieties and precision agriculture techniques can help mitigate these risks. By adopting adaptive strategies, farmers can safeguard productivity and ensure long-term sustainability.

India’s increasing reliance on cotton imports is yet another major concern. The Cotton Association of India (CAI) projects a 42% rise in imports to 2.5 million bales this year, while exports are expected to decline by 37% to 1.8 million bales. This trend not only affects farmers’ earnings but also impacts the country’s trade balance, making it essential to boost domestic production.

Niranjan Chaudhari, a cotton farmer, highlights these issues:

“Government support remains inadequate, leaving farmers exposed to risks. Market volatility and fluctuating demand create financial instability, making it difficult to secure fair prices. Sudden weather changes have led to new crop diseases, increasing cultivation costs, especially as labor expenses rise. As a result, cotton farming is becoming less viable, forcing many farmers to abandon it.”

To address these challenges, the government has announced several measures aimed at improving cotton yields and ensuring long-term sustainability. A key initiative is the release of high-yield, climate-resilient varieties for 32 crops, including cotton. These improved seed varieties will be made available to farmers within the next three years and are expected to enhance resistance to pests and diseases while improving overall yield.

The government has focused on expanding the coverage of the Pradhan Mantri Fasal Bima Yojana (PMFBY) to include more cotton farmers. This crop insurance scheme provides financial protection against losses due to adverse weather conditions, natural disasters, and pest infestations. By reducing the financial risks associated with cotton farming, the scheme aims to encourage more farmers to grow cotton.

Mr. Niranjan further adds that the establishment of a new Cotton Research Institute will be a game-changer, additionally, trade-focused measures have been introduced to boost India’s presence in the global cotton market.

The budget has announced incentives for cotton exporters to promote the export of Indian cotton. This will help increase demand for Indian cotton and provide a boost to the domestic cotton industry,

Strengthening India’s Global Cotton Identity

A key government initiative aimed at enhancing India’s cotton sector is the Ministry of Textiles’ Kasturi Cotton Initiative. This program seeks to establish Indian cotton as a premium global brand by improving quality standards and promoting sustainable farming practices. Through collaborations between the government, industry stakeholders, and trade bodies, the initiative focuses on increasing the production of long-staple cotton, essential for manufacturing high-quality textiles.

By positioning Kasturi Cotton as a globally recognized brand associated with purity, sustainability, and excellence, the initiative aims to secure better market prices for Indian cotton while strengthening the country’s export potential.

Despite these efforts, India’s cotton production has witnessed a declining trend over the past few years. Output fell from 35 million bales in FY21 to 31 million bales in FY22. Although there was a slight recovery to 33 million bales in FY23, production dipped again to 32 million bales in FY24. This downward trajectory raises concerns about India’s ability to maintain its position in global trade.

The textile industry has also been impacted by fluctuating exports. Textile exports fell from US$ 33.83 billion in FY20 to US$ 29.46 billion in FY21, rose to US$ 41.12 billion in FY22, but then declined again to US$ 35.55 billion in FY23 and US$ 34.4 billion in FY24. The government hopes that by improving cotton productivity, it can reverse this trend and strengthen the textile sector.

India’s cotton industry can reach newer heights when its supported by policy interventions and modern farming practices to boost productivity and reduce import reliance. Government’s budget for cotton mission and initiatives like HDPS, improved seed varieties, and PMFBY offers a holistic approach to farmer challenges.

Leave a comment

Subscribe To Newsletter

Stay ahead in the dynamic world of trade and commerce with India Business & Trade's weekly newsletter.