What Happened
- India's cotton acreage has fallen sharply to 11.2 million hectares in 2025-26, down from 13.4 million hectares in 2019-20 — a decline of nearly one-fifth over six years.
- Farmers in major cotton-growing states including Haryana, Rajasthan, and parts of peninsular India are switching to paddy rice, maize, and pulses due to erratic monsoons, persistent pest attacks, and relatively better returns from alternative crops.
- Cotton productivity remains volatile — Pink Bollworm infestations, which can reduce seed cotton yield by up to 90% in severely affected fields, have undermined the effectiveness of Bt cotton varieties, discouraging fresh area expansion.
- The USDA's Foreign Agricultural Service projects India's 2025-26 cotton output at around 24.5 million 480-pound bales, supported by above-average rainfall that improved yields on reduced area to approximately 476 kg per hectare — a six-year high.
Static Topic Bridges
Minimum Support Price (MSP) and Cotton Procurement
The Minimum Support Price is the floor price at which the government, through the Cotton Corporation of India (CCI) under the Ministry of Textiles, procures cotton from farmers when market prices fall below viable levels. The MSP is recommended annually by the Commission for Agricultural Costs and Prices (CACP) — an advisory body under the Ministry of Agriculture — which accounts for production costs (A2+FL), regional disparities, and price trends.
- For 2025-26, the MSP for medium-staple cotton was raised by 8.3% to ₹7,710 per quintal, and for long-staple cotton by 7.8% to ₹8,110 per quintal.
- The CACP recommends MSPs for 23 mandated crops; cotton is one of the kharif crops covered.
- CCI conducts price support scheme (PSS) operations: it procures cotton at MSP when market arrivals depress prices.
- Despite MSP increases, farmers in rain-fed regions shift away from cotton due to high input costs (pesticide use for Pink Bollworm) that erode net returns.
Connection to this news: Even with record MSP hikes, the uncertainty of pest-related yield losses makes cotton less financially attractive compared to paddy or maize, explaining the persistent acreage erosion.
Bt Cotton and the Pink Bollworm Resistance Problem
Bt cotton — genetically modified to express insecticidal Cry proteins from Bacillus thuringiensis — was commercially introduced in India in 2002 and rapidly adopted, covering over 90% of cotton area by the 2010s. It dramatically reduced pesticide use initially, but Pink Bollworm (Pectinophora gossypiella) has since evolved resistance to Cry1Ac proteins. The Genetic Engineering Appraisal Committee (GEAC), under the Ministry of Environment, regulates GM crop approvals in India.
- Pink Bollworm infestations now range from 8–29% during flowering to 40–92.5% at boll maturation in affected fields.
- India's cotton production hit a 15-year low of 25 million bales partly due to sustained PBW damage.
- Farmers respond by increasing pesticide applications, raising input costs and reducing net margins.
- New herbicide-tolerant and improved Bt varieties are under review by GEAC but face regulatory delays.
Connection to this news: The breakdown of Bt cotton's pest protection is a structural driver of acreage decline — without reliable pest management, farmers rationally shift to less risky crops.
Pradhan Mantri Fasal Bima Yojana (PMFBY) and Cotton
Launched in February 2016 under the Ministry of Agriculture and Farmers' Welfare, PMFBY is the world's largest crop insurance scheme by farmer enrollment. It covers losses from natural calamities, pests, and diseases across the full cropping cycle — from pre-sowing to post-harvest. The scheme replaced earlier schemes with a uniform premium: 2% for kharif crops (including cotton), 1.5% for rabi, and 5% for commercial/horticultural crops, with the balance premium shared between state and central governments.
- Over nine years, PMFBY enrolled 72.61 crore farmer applications; 19.61 crore farmers received claims.
- Cotton farmers in Vidarbha alone received ₹3,653 crore in PMFBY claims over five years.
- Cabinet in January 2025 approved continuation of PMFBY until 2025-26 with a total outlay of ₹69,515.71 crore.
- A known challenge: delays in claims settlement and low awareness in remote rain-fed cotton belts reduce scheme effectiveness.
Connection to this news: Despite PMFBY coverage, the frequency of pest and weather-related losses in cotton — and inadequate claims settlement — weakens farmers' risk appetite for cotton cultivation.
India's Cotton Geography and Economic Significance
India is the world's largest cotton producer (competing with China) and exporter of raw cotton. Cotton cultivation is concentrated in the "Cotton Belt" spanning Gujarat, Maharashtra (Vidarbha), Telangana, Andhra Pradesh, Madhya Pradesh, and Haryana — predominantly rain-fed, kharif-season crop. Cotton is the backbone of the textile and apparel industry, which is the second-largest employment generator after agriculture.
- India's cotton area of 11.2 million hectares in 2025-26 is the lowest in at least six years.
- Gujarat and Telangana are the largest cotton-growing states by area.
- Cotton export revenues directly affect forex earnings; India exported around 2.5 million bales in 2024-25.
- The shift to paddy and maize in rain-fed zones raises water table and groundwater concerns in water-scarce regions.
Connection to this news: The geographic concentration of cotton in rain-fed, drought-prone regions makes it inherently more vulnerable to the dual shock of weather volatility and pest resistance than irrigated alternatives like rice.
Key Facts & Data
- Cotton acreage in India: 11.2 million hectares (2025-26) vs. 13.4 million hectares (2019-20) — a 16.4% decline.
- Projected cotton output 2025-26: approximately 24.5 million 480-pound bales.
- Average cotton yield 2025-26: ~476 kg per hectare (six-year high due to good monsoon).
- MSP for long-staple cotton 2025-26: ₹8,110 per quintal (up 7.8% from previous year).
- MSP for medium-staple cotton 2025-26: ₹7,710 per quintal (up 8.3%).
- Pink Bollworm boll damage at maturation: 40–92.5% in heavily infested fields.
- PMFBY budget approved for continuation: ₹69,515.71 crore through 2025-26.
- States shifting away from cotton to paddy: Haryana (5% acreage decline), Rajasthan (2%).