The Press Information Bureau (PIB) recently released a detailed backgrounder 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 commercial crops, a relevant topic for both prelims and mains preparation, covering agriculture, trade and government schemes.
Understanding the basics
Cotton is called “white gold” because of its outsized economic importance in India. It supports the livelihoods of around 6 million cotton farmers and provides employment to another 40-50 million people in processing and trade. It is also a major foreign exchange earner through exports of fibre, yarn, fabric and garments.India holds a unique position in the global cotton economy:
- First in the world in cotton cultivation area
- Second in production and consumption globally
- The only country that cultivates all four recognised cotton species
- Contributes close to a fifth of global fibre production
How it works
- Species and hybrids: India grows all four cotton species: 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 genes from this bacterium, giving it resistance to bollworms. Introduced commercially in 2002, it cut bollworm damage and reduced dependence on insecticide sprays, which improved farm incomes over time.
- Staple length: Cotton fibre is classified by staple length, which determines quality and use, ranging from short staple (20 mm and below) to extra-long staple (32.5 mm and above). India produces the entire range.
- Cultivation pattern: Around 62 percent of India’s cotton is rain-fed, while the remaining 38 percent is irrigated. Production is measured in bales, where one bale equals 170 kg.
- Geographic spread: Cultivation is concentrated in nine major states across three zones:
- Northern Zone: Punjab, Haryana, Rajasthan
- Central Zone: Gujarat, Maharashtra, Madhya Pradesh
- Southern Zone: Telangana, Andhra Pradesh, Karnataka
Odisha and Tamil Nadu also grow cotton outside these zones.
Governing bodies and schemes
- Cotton Corporation of India (CCI): The nodal agency for Minimum Support Price (MSP) operations. It steps in to procure cotton when market prices fall below MSP. Its procurement network expanded from 508 centres in 2024-25 to 571 in 2025-26, covering 152 districts in 11 states.
- Commission for Agricultural Costs and Prices (CACP): Recommends the MSP for cotton every cotton year (October to September), covering medium staple and long staple seed cotton (kapas). The goal is to ensure farmers get at least 50 percent return over production cost.
- Mission for Cotton Productivity: A five-year mission launched in 2025-26 with an outlay of Rs. 5,659.22 crore. It focuses on developing climate-resilient and pest-resistant cotton varieties, with special attention to Extra Long Staple (ELS) cotton. It follows the “5F” vision: farm, fibre, factory, fashion, foreign. The mission targets raising production from 297 lakh bales to 498 lakh bales by 2031, covering 24 lakh hectares across 140 districts in 14 states, benefiting around 32 lakh farmers.
- Special Project on Cotton (under NFSM): Running since 2023-24 across 8 major cotton states, this project demonstrates technologies like the High-Density Planting System and Closer Spacing Planting System. Field trials recorded yield gains of about 40 percent under HDPS and over 32 percent under closer spacing.
- Kapas Kisan App: A mobile application for MSP procurement that allows farmers to self-register, book procurement slots, receive Aadhaar-linked payments and get real-time SMS updates. Over 41 lakh farmers have registered on it.
- Kasturi Cotton Bharat: A branding and traceability initiative implemented with the Ministry of Textiles, CCI and TEXPROCIL, with a total outlay of Rs. 30 crore. It certifies long staple (28 mm and above) and ELS cotton (35 mm and above) using QR-based, blockchain-backed traceability, positioning Indian cotton globally as a mark of quality.
India’s position
- Cotton production stood at 290.91 lakh bales in 2025-26 (provisional), with domestic consumption at 328 lakh bales.
- MSP for 2026-27 stands at Rs. 8,267 per quintal for medium staple 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 US$ 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 yields edible oil (called “heart oil” for its polyunsaturated fat content), animal feed, biomass fuel from stalks, and surgical cotton from short fibres.
Prelims fact box
Mains question
“Cotton is often called India’s white gold, yet productivity remains a challenge compared to global peers.” Examine the factors affecting cotton productivity in India and discuss the effectiveness of recent government interventions in addressing them. (250 words)
Test yourself
1. Which of the following cotton species 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 statements given above is/are correct?
(a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2Answer: (a)3. The Minimum Support Price for cotton is recommended by which of the following bodies?(a) Cotton Corporation of India (b) Commission for Agricultural Costs and Prices (c) Ministry of Textiles (d) TEXPROCILAnswer: (b)4. The “Kasturi Cotton Bharat” initiative is primarily aimed at:(a) Providing crop insurance to cotton farmers (b) Traceability, certification and branding of Indian cotton (c) Distributing Bt cotton seeds free of cost (d) Setting MSP for cottonAnswer: (b)5. Which of the following pairs of state and cotton zone is correctly matched?(a) Telangana – Northern Zone (b) Gujarat – Southern Zone (c) Punjab – Northern Zone (d) Maharashtra – Southern ZoneAnswer: (c)
Five key terms to remember
- Kapas – Unginned seed cotton, the raw form on which MSP is announced.
- Bt Cotton – Genetically modified cotton carrying Bacillus thuringiensis genes for bollworm resistance.
- Staple Length – The average fibre length of cotton, used to classify quality (short to extra-long staple).
- Bale – The standard trade unit of cotton, equal to 170 kg.
- ELS Cotton – Extra Long Staple cotton, with fibre length of 32.5 mm and above, prized for premium textiles.
Quick Q&AQ: Why is cotton called “white gold”?Because of its major role in employment, farmer livelihoods 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 market price fluctuates based on demand and supply. Procurement agencies like CCI buy at MSP when market prices fall below it.Q: Why is Bt cotton controversial despite its benefits?While it reduced pest damage and insecticide use, concerns remain around seed costs, resistance development in pests over time, and regulatory approval processes for new GM traits.
