The Press Information Bureau (PIB) recently released a detailed briefing paper titled ‘White Gold: India’s Cotton Story’, tracing cotton’s journey from cultivation to export and highlighting government schemes aimed at improving productivity, quality and market access. This makes cotton, one of India’s oldest cash crops, a relevant topic for both pre-preparations and grain preparation, covering agriculture, trade and government programmes.
Understand the basics
Cotton is called “white gold” because of its enormous economic importance in India. It supports the livelihoods of about 6 million cotton farmers and employs another 40-50 million people in the processing and trading process. It is also a major foreign exchange earner through exports of fibre, yarn, fabric and garments.India occupies a unique position in the global cotton economy:
- First in the world in cotton cultivation area
- Second in production and consumption worldwide
- The only country that grows all four recognized cotton species
- It contributes about a fifth of the world’s fiber production
how it works
- Species and hybrids: India grows all four species of cotton: G. Arboreum and G. Herbaceum (Asian cotton), G. Barbadense (Egyptian cotton) and G. Hirsutum (American upland cotton). G. Hirsutum accounts for nearly 90 percent of India’s hybrid cotton, and all Bt cotton hybrids grown in the country belong to this species.
- Bt cotton: Bt refers to Bacillus thuringiensis, a soil bacterium. Bt cotton is genetically modified to carry the genes of this bacterium, which gives it resistance to bollworms. Introduced commercially in 2002, it reduced bollworm damage and reduced reliance on insecticide sprays, which improved farm incomes over time.
- Staple Length: Cotton fiber is classified by staple length, which determines quality and use, ranging from short staple (20 mm or less) to extra long staple (32.5 mm and more). India produces the entire range.
- Crop pattern: About 62% of India’s cotton is rainfed, while the remaining 38% is irrigated. Production is measured in bales, where one bale equals 170 kg.
- Geographic distribution: Cultivation is concentrated in nine main states in three zones:
- North zone: Punjab, Haryana, Rajasthan
- Central area: Gujarat, Maharashtra, Madhya Pradesh
- South zone: Telangana, Andhra Pradesh, Karnataka
Odisha and Tamil Nadu also grow cotton outside these areas.
Government bodies and regimes
- Cotton Corporation of India (CCI): The nodal agency for Minimum Support Price (MSP) operations. It intervenes to procure cotton when market prices fall below the MSP. Its procurement network expanded from 508 centers in 2024-25 to 571 in 2025-26, covering 152 districts in 11 states.
- Agricultural Costs and Prices Commission (CACP): It recommends the MSP for cotton in each cotton year (October to September), covering medium staple and long staple (kapas) cotton. The aim is to ensure that farmers get at least 50 percent return on the cost of production.
- Mission for Cotton Productivity: A five-year mission launched in 2025-26 with an outlay of Rs. 5,659.22 million. It focuses on the development of climate and pest resistant cotton varieties, with a special focus on extra long staple (ELS) cotton. It follows the “5F” vision: farm, fiber, factory, fashion, foreign. The mission aims to increase production from 297 lakh bales to 498 lakh bales by 2031, covering 24 lakh hectares in 140 districts of 14 states, benefiting around 32 lakh farmers.
- Special Project on Cotton (under NFSM): Running from 2023-24 in 8 major cotton states, this project demonstrates technologies such as high density planting system and closer space planting system. Field tests reported performance gains of approximately 40 percent with HDPS and more than 32 percent with closer spacing.
- Kapas Kisan Application: A mobile application for MSP procurement that allows farmers to register, book procurement slots, receive Aadhaar linked payments and receive real-time SMS updates. More than 41 thousand farmers have registered.
- Kasturi Cotton Bharat: A branding and traceability initiative implemented with the Ministry of Textiles, CCI and TEXPROCIL, with a total expenditure of Rs. 30 crores. It certifies long staple cotton (28mm and above) and ELS cotton (35mm and above) through QR-based traceability and blockchain support, positioning Indian cotton globally as a quality brand.
India’s position
- Cotton production stood at 290.91 lakh bales in 2025-26 (provisional), with domestic consumption at 328 lakh bales.
- The MSP for 2026-27 is Rs. 8,267 per quintal for medium staples and Rs. 8,667 per quintal for long staple cotton, an increase of Rs. 557 over the previous year for both.
- Cotton exports in FY25 were valued at $11.49 billion, with the United States the largest destination (26.35 percent share), followed by Bangladesh (19.81 percent) and Sri Lanka (5.11 percent).
- Beyond textiles, cottonseed produces edible oil (called “heart oil” because of its polyunsaturated fat content), animal feed, biomass fuel from stalks, and surgical cotton from short fibers.
Preliminary data box
Main question
“Cotton is often called India’s white gold, but productivity remains a challenge compared to global peers.” Examine the factors affecting cotton productivity in India and discuss the effectiveness of recent government interventions to address them. (250 words)
Put yourself to the test
1. Which of the following species of cotton accounts for nearly 90 percent of hybrid cotton production in India?(a) G. Arboreum (b) G. Herbaceum (c) G. Hirsutum (d) G. BarbadenseAnswer: (c)2. Consider the following statements:
- India ranks first in the world in cotton cultivation area.
- India ranks first in the world in cotton production. Which of the above statements are correct?
(a) Only 1 (b) Only 2 (c) Both 1 and 2 (d) Neither 1 nor 2Answer: (a)3. Which of the following bodies recommends the minimum support price for cotton?(a) Cotton Corporation of India (b) Agricultural Costs and Prices Commission (c) Ministry of Textiles (d) TEXPROCILAnswer: (b)4. The “Kasturi Cotton Bharat” initiative has as its main objective:(a) Providing crop insurance to cotton farmers (b) Traceability, certification and branding of Indian cotton (c) Free distribution of Bt cotton seeds (d) Establishment of MSP for cottonAnswer: (b)5. Which of the following pairs of state and cotton zone is a correct match?(a) Telangana – North Zone (b) Gujarat – South Zone (c) Punjab – North Zone (d) Maharashtra – South ZoneAnswer: (c)
Five key terms to remember
- Kapas: Unginned seed cotton, the raw form in which MSP is advertised.
- Bt Cotton: Genetically modified cotton that carries Bacillus thuringiensis genes for bollworm resistance.
- Staple length: The average length of the cotton fiber, which is used to classify quality (short to extra long staple).
- Bale: The standard commercial unit of cotton, equal to 170 kg.
- ELS Cotton: Extra long staple cotton, with a fiber length of 32.5 mm and more, appreciated for premium textiles.
Quick questions and answersQ: Why is cotton called “white gold”?Because of its major role in employment, livelihood of farmers and foreign exchange earnings through textile exports.Q: What is the difference between MSP and market price?MSP is a guaranteed minimum price set by the government, while the market price fluctuates based on demand and supply. Buying agencies like CCI buy from MSP when market prices fall below.Q: Why is Bt cotton controversial despite its benefits?Although it reduced pest damage and insecticide use, there are still concerns about seed costs, the development of pest resistance over time, and regulatory approval processes for new transgenic traits.