Cotton, often referred to as “White Gold,” has long been a pillar of India’s agricultural economy. India is one of the largest producers and exporters of cotton in the world, with millions of farmers relying on cotton cultivation for their livelihoods. Yet, in recent years, this vital crop has been grappling with a persistent problem—unstable and unsatisfactory pricing. For the cotton farmer, the promise of profits is increasingly being replaced with uncertainty, low returns, and rising distress.

In this blog, we explore the present situation of cotton farming in India, the reasons behind the price struggle, and what can be done to secure a better future for our cotton growers.

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Current Scenario: A Crisis Brewing on the Fields

Despite a good monsoon in several cotton-growing states and relatively stable acreage under cotton cultivation, farmers are not getting remunerative prices for their produce. In markets across Maharashtra, Telangana, Gujarat, and Madhya Pradesh, farmers report prices hovering below the Minimum Support Price (MSP). Many have been forced to sell their cotton at ₹6,000–₹6,500 per quintal, even though the MSP for medium staple cotton is ₹6,620 per quintal and ₹7,020 for long staple varieties.

This price reality is starkly different from the rising cost of cultivation. Inputs such as seeds, fertilizers, pesticides, labor, and especially irrigation are becoming more expensive. Additionally, climate-related risks—like untimely rains, pest infestations (such as pink bollworm), and erratic temperature patterns—are impacting both yield and quality, further reducing market value.

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Why Is Cotton Struggling for Price?

Several interlinked factors are contributing to the price struggle for cotton:

1. Global Market Volatility

Cotton is a globally traded commodity. Prices in India are deeply influenced by international demand and supply. The slowdown in global demand, particularly from textile giants like China, Bangladesh, and Vietnam, is dampening export prospects. High inventories in importing countries and cheap alternatives from other cotton-exporting nations like Brazil and the US have led to a global price slump, affecting Indian prices.

2. Import Policies and Trade Agreements

India, at times, has allowed duty-free imports of cotton to support the domestic textile industry. While this may benefit the spinning and textile sectors, it directly hurts cotton farmers by creating excess supply in the domestic market and depressing prices during the peak arrival season.

3. Weak Procurement Infrastructure

While the Cotton Corporation of India (CCI) is mandated to procure cotton at MSP, its operations are often delayed or limited to specific mandis. In many areas, the procurement system is either absent or inactive, leaving farmers at the mercy of private traders who offer prices well below MSP. Lack of awareness and procedural delays further discourage farmers from availing MSP procurement benefits.

4. Quality-Based Price Differentiation

Cotton pricing is heavily dependent on fiber quality, which is influenced by factors such as moisture content, pest damage, and picking practices. Unfortunately, most mandis lack scientific grading and testing infrastructure. As a result, even high-quality cotton may be undervalued, and farmers are often unable to prove the true worth of their produce.

5. Rising Cost of Inputs

The average cost of cultivating one acre of cotton has significantly increased. From seed costs to irrigation, labor, and pesticide usage (particularly to combat pests like pink bollworm and whitefly), farmers are spending more while earning less. This widening gap between cost and price is pushing many into debt and despair.

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Regional Snapshot: A Farmer’s Struggle

Maharashtra and Telangana:

Large-scale cotton-growing regions like Vidarbha and Marathwada have witnessed farmer agitations over falling prices and delayed procurement. In Telangana, despite a record harvest, prices in the market have failed to match expectations, leading to widespread frustration and financial hardship.

Gujarat:

India’s leading cotton producer is also facing similar issues. Farmers in Saurashtra report lower-than-MSP prices, blaming intermediaries and delayed government intervention. Export barriers and subdued international demand are also hitting farmers hard.

Punjab and Haryana:

Here, cotton faces stiff competition from alternative crops like paddy and wheat. Additionally, cotton yield in this region is highly vulnerable to pest infestations, resulting in poor quality and reduced prices.

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What Needs to Be Done?

The current cotton pricing crisis is not just a seasonal issue—it reflects systemic challenges that need long-term policy and structural solutions.

1. Strengthen MSP Procurement

The Cotton Corporation of India needs to expand its procurement coverage and ensure timely, transparent operations. Digital monitoring, more procurement centers, and simplified procedures can help farmers get the MSP they are entitled to.

2. Promote Diversified Cotton Markets

Farmers should have access to alternative, competitive marketing platforms, such as Farmer Producer Organizations (FPOs), eNAM (electronic National Agriculture Market), and direct-to-textile mill linkages. Reducing the role of middlemen will improve farmer price realization.

3. Invest in Quality Testing and Grading

Establishing modern cotton testing labs at mandis will help farmers get fair prices based on quality. These labs should be equipped to certify fiber length, strength, moisture content, and contamination, enabling better market differentiation.

4. Encourage Low-Input, Sustainable Practices

Promotion of organic and sustainable cotton farming—such as through regenerative practices, use of bio-pesticides, intercropping, and organic inputs like Jivamrut—can reduce input costs and attract premium pricing. Cotton grown with fewer chemical inputs is gaining traction globally and could open up niche export markets.

5. Long-Term Export and Trade Strategy

India needs a stable, farmer-centric cotton trade policy that balances the interests of both growers and the textile industry. Controlled imports, support for exports, and bilateral trade agreements that benefit Indian cotton farmers should be a key part of this strategy.

6. Farmer Training and Extension Services

There is a need to educate and equip farmers with knowledge of market trends, quality preservation, pest management, and post-harvest handling. Extension services must be robust, localized, and proactive in guiding farmers from seed to sale.

Conclusion: Time to Value the Farmer’s Effort

Cotton has the potential to be a profitable crop for millions of Indian farmers—but only if pricing reflects their effort, investment, and risk. The ongoing crisis is a call to action for policymakers, agri-businesses, researchers, and society at large. Farmers should not be left to bear the brunt of global market forces, poor procurement mechanisms, or inadequate support systems.

To revive the promise of White Gold, we must build a fair, transparent, and farmer-first cotton economy—one that ensures profitability with sustainability.