The government has formally designated cotton as “White Gold”, recognizing its extraordinary contribution to India’s agricultural economy and textile industry. India is the only country in the world that cultivates all four recognized species of cotton and ranks first globally in cultivation area, covering 114.84 lakh hectares or 38% of the world’s total cotton area. With production of 290.91 lakh bales in 2025-26 and exports worth $11.49 billion in FY25, cotton supports the livelihoods of around 6 million farmers and provides employment to another 40-50 million people in processing and trade.
Why Cotton Is Called White Gold
Cotton has earned the title of “White Gold” because of its outsized economic importance in India. Unlike other commercial crops, cotton creates a complete value chain that connects the farmer to the global fashion industry. The crop accounts for nearly 23% of global fibre production and contributes significantly to India’s foreign exchange earnings.
The cotton sector supports the livelihoods of around 6 million cotton farmers and sustains employment for another 40-50 million people engaged in ginning, spinning, weaving, garment manufacturing, and trade. A single cotton crop thus touches more lives than almost any other agricultural commodity in India.
Beyond employment, cotton is a critical source of foreign exchange. India exported cotton and cotton products worth $11.49 billion in FY25, with the United States being the largest market, accounting for 26.35% of India’s cotton fabric and made-up exports. The crop also plays a vital role in India’s domestic textile industry, which consumes 328 lakh bales of cotton annually more than the country’s current production.
India’s Position in the Global Cotton Economy
India occupies a unique position in the global cotton landscape. The country leads the world in cotton cultivation area with 114.84 lakh hectares, which is roughly 38% of the global cotton area of 304.08 lakh hectares. Despite having the largest area, India ranks second in both production and consumption, behind China.
For the 2025-26 season, India’s cotton production is provisionally estimated at 290.91 lakh bales (equivalent to 4.95 million metric tonnes). This accounts for nearly 20% of global cotton output. However, India’s domestic consumption stands higher at 328 lakh bales (5.58 million tonnes), indicating a gap between production and demand that has implications for imports and prices.
| Metric | India’s Data | Global Rank |
|---|---|---|
| Cultivation area | 114.84 lakh hectares (38% of global) | 1st |
| Production | 290.91 lakh bales (4.95 MT) in 2025-26 | 2nd |
| Consumption | 328 lakh bales (5.58 MT) | 2nd |
| Cotton exports (FY25) | $11.49 billion | Major exporter |
| Global fibre production share | ~23% | - |
India’s cotton is measured in bales, where one bale equals 170 kg. About 62% of India’s cotton is grown under rain-fed conditions, with only 38% under irrigation. This heavy dependence on rainfall makes production vulnerable to monsoon variability and climate change.
Geographical Spread of Cotton Cultivation
Cotton is cultivated in 9 major states grouped into 3 agro-ecological zones, with additional production in Odisha and Tamil Nadu.
| Zone | States | Characteristics |
|---|---|---|
| Northern Zone | Punjab, Haryana, Rajasthan | Irrigated cultivation, high productivity. Includes some of the highest cotton-yielding areas in the country |
| Central Zone | Gujarat, Maharashtra, Madhya Pradesh | Largest producing region. Gujarat alone contributes about 27% of India’s total cotton production, followed by Maharashtra at 21% |
| Southern Zone | Telangana, Andhra Pradesh, Karnataka | Telangana contributes about 17% of national production. Predominantly rain-fed cultivation |
Cotton Species and Classification
India is the only country that cultivates all four recognized species of cotton:
| Species | Common Name | Share in India |
|---|---|---|
| G. Hirsutum | American upland cotton | Nearly 90% of hybrid cotton production. All Bt cotton hybrids belong to this species |
| G. Barbadense | Egyptian cotton | Premium quality, extra-long staple fibre |
| G. Arboreum | Asian cotton | Traditional desi cotton |
| G. Herbaceum | Asian cotton | Traditional desi cotton |
Bt cotton, introduced commercially in India in 2002, is a genetically modified variety that carries genes from the soil bacterium Bacillus thuringiensis. These genes provide resistance against bollworms, which are major pests affecting cotton. Bt cotton significantly reduced bollworm infestation and lowered the need for insecticide sprays, contributing to improved farm incomes after its adoption.
Cotton is also classified by staple length (fibre length), which determines quality and end use:
| Staple Category | Length (mm) |
|---|---|
| Short Staple | 20 and below |
| Medium Staple | 20.5 to 24.5 |
| Medium Long Staple | 25.0 to 27.0 |
| Long Staple | 27.5 to 32.0 |
| Extra-Long Staple (ELS) | 32.5 and above |
Government Initiatives to Strengthen the Cotton Sector
The government has adopted a multi-pronged strategy covering price support, productivity enhancement, technology adoption, and branding to strengthen India’s cotton ecosystem. Key initiatives include the Minimum Support Price mechanism, the Mission for Cotton Productivity, the Kasturi Cotton Bharat branding programme, and digital platforms like the Kapas Kisan App.
Minimum Support Price and the Role of CCI
The Minimum Support Price (MSP) system serves as a key safeguard for cotton farmers. Before each cotton year (October to September), the Commission for Agricultural Costs and Prices (CACP) recommends the MSP for Medium Staple and Long Staple varieties of seed cotton (kapas). The objective is to ensure farmers receive at least 50% return over production costs.
The Cotton Corporation of India (CCI), established on 31 July 1970 under the Companies Act, acts as the central nodal procurement agency for MSP operations. Headquartered in Navi Mumbai, CCI intervenes when seed cotton prices fall below MSP levels. Its procurement network has expanded from 508 centres in 2024-25 to 571 centres in 2025-26, covering 152 districts across 11 cotton-growing states.
For 2026-27, the MSP was fixed at:
- ₹8,267 per quintal for medium-staple cotton (up from ₹7,710 in 2025-26)
- ₹8,667 per quintal for long-staple cotton (up from ₹8,110 in 2025-26)
The increase of ₹557 per quintal for both varieties reflects the government’s commitment to remunerative prices. During the 2025-26 cotton season, CCI procured 105.09 lakh bales valued at ₹41,530 crore through 24 lakh procurement transactions.
Mission for Cotton Productivity
The Mission for Cotton Productivity is a five-year initiative (2026-27 to 2030-31) approved by the Union Cabinet with an outlay of ₹5,659.22 crore. The mission aims to address the long-standing challenge of low productivity in Indian cotton farming, where average yields of around 430-450 kg per hectare lag significantly behind global leaders like Australia and China.
The mission is aligned with the ‘5F’ vision of Farm, Fibre, Factory, Fashion, and Foreign. Its key targets include:
- Increasing cotton production from 297 lakh bales to 498 lakh bales by 2031
- Raising productivity to 755 kg per hectare
- Covering nearly 24 lakh hectares across 140 districts in 14 cotton-producing states
- Benefiting around 32 lakh farmers
- Special focus on developing climate-resilient, pest-resistant, and high-yielding varieties, with emphasis on Extra Long Staple (ELS) cotton
- Using advanced breeding and biotechnology tools
Additionally, a Special Project on Cotton has been implemented under the National Food Security Mission (NFSM) since 2023-24. It covers 8 major cotton-growing states and promotes technologies like the High-Density Planting System (HDPS), which recorded yield gains of about 40%, and the Closer Spacing Planting System, which achieved yield increases of more than 32% in field demonstrations.
Kasturi Cotton Bharat: Branding Indian Cotton
Kasturi Cotton Bharat is a flagship branding and traceability initiative of the Ministry of Textiles. It aims to establish Indian cotton as a globally recognized mark of quality, purity, and sustainability. The programme is implemented in partnership with the Cotton Corporation of India and the Cotton Textiles Export Promotion Council (TEXPROCIL) with a total outlay of ₹30 crore.
Key features of the programme:
- QR-based certification and blockchain technology ensure end-to-end traceability from farm to finished product
- Certification covers long-staple cotton (28 mm and above) and extra-long staple cotton (35 mm and above)
- Testing is done by NABL (National Accreditation Board for Testing and Calibration Laboratories) accredited agencies
- As of June 2026, 3,29,550 bales have been certified, including 3,22,400 bales from CCI
- 116 units, including 41 ginners and 75 supply chain members, have registered
- India has registered Kasturi Cotton as a brand and trademark to strengthen its position in global premium textile markets
Digital Interventions: The Kapas Kisan App
The Kapas Kisan App has been introduced to digitize and streamline cotton procurement under MSP operations. The platform enables cotton growers to self-register, book procurement slots on a rolling four-week basis, and receive Aadhaar-linked payments with real-time SMS updates.
Over 41 lakh farmers have registered on the app so far. The system has significantly reduced waiting time at procurement centres and transformed cotton procurement into a paperless, farmer-friendly process.
India’s Cotton Exports and Global Trade Footprint
India maintains a strong presence in the global cotton trade. In 2024-25, the country exported an estimated 18 lakh bales (0.31 million metric tonnes), accounting for about 3.37% of world cotton exports. In value terms, cotton and cotton product exports reached $11.49 billion in FY25.
The top destinations for India’s cotton fabrics and made-ups are:
| Country | Share of India’s Cotton Exports |
|---|---|
| United States | 26.35% |
| Bangladesh | 19.81% |
| Sri Lanka | 5.11% |
| United Kingdom | 2.38% |
| United Arab Emirates | 2.32% |
The US has emerged as India’s largest cotton export market, reflecting the growing demand for Indian textile products in North America. Bangladesh, the second-largest destination, sources substantial quantities of Indian cotton for its large readymade garment industry, which exports to European and American markets.
India’s cotton exports span the entire value chain including fibre, yarn, fabrics, and ready-made garments. This diversified export basket reduces dependence on any single product category and strengthens India’s position as a reliable supplier in the global textile supply chain.
Beyond Textiles: The Many Uses of Cotton
Cotton is far more than a source of fibre for clothing. A raw cotton bale consists of roughly one-third lint (fibre) and two-thirds seed. The seed contains about 18% edible oil, while the remaining meal is widely used as nutritious feed for cattle, poultry, and fish.
Key by-products of cotton include:
- Cottonseed oil: Often called “heart oil” because it contains nearly 50% essential polyunsaturated fatty acids. It is the third-largest contributor to India’s edible oil basket.
- Deoiled cake: Used as high-protein animal feed after oil extraction
- Linters and hulls: Short fibres and seed coats used in various industrial applications
- Cotton stalks: Dried stalks serve as biomass fuel in rural areas
- Surgical cotton: Short-staple fibres unsuitable for spinning are processed into absorbent cotton used in healthcare
These diverse uses highlight cotton’s role in supporting nutrition, livestock farming, industry, and healthcare beyond its primary textile function.
Key Takeaways
- The government has designated cotton as “White Gold” in recognition of its economic importance, supporting 6 million farmers and providing employment to 40-50 million people.
- India ranks first globally in cotton cultivation area (114.84 lakh hectares, 38% of global area) and second in both production and consumption.
- Cotton production for 2025-26 is provisionally estimated at 290.91 lakh bales (4.95 MT), while domestic consumption stands at 328 lakh bales (5.58 MT).
- India’s cotton exports were valued at $11.49 billion in FY25, with the United States being the largest destination (26.35% share).
- The Cotton Corporation of India (CCI), established in 1970 and headquartered in Navi Mumbai, is the nodal agency for MSP operations and procured 105.09 lakh bales worth ₹41,530 crore in 2025-26.
- The Mission for Cotton Productivity (2026-27 to 2030-31), with an outlay of ₹5,659.22 crore, targets raising production to 498 lakh bales by 2031, aligned with the ‘5F’ vision (Farm, Fibre, Factory, Fashion, Foreign).
