Cotton cultivation in India has declined by 8 per cent this year. Reason: a large number of cotton growing farmers have switched to food crops such as soybean for better returns. Generally, farmers prefer cotton as it requires less of water. Recession in the global market last year, however, has led to a crash in cotton prices. In addition, poor yields and high cultivation costs have made cotton less lucrative over the years.

Last year's recession in the cotton market, reduced exports to China and the US, international stock hoarding and skewed minimum support price are supposed to be the prime factors behind the sudden decline in cultivation of this cash crop.

Barring Punjab, Gujarat and MP, all cotton growing states have witnessed a huge drop in acreage this year. Tamil Nadu topped the chart with one-third of the cotton land going to other crops. Maharashtra – the second largest cotton growing state in the country after Gujarat – has witnessed a nine per cent decline in cotton sowing. The total cotton output of India is also expected to be 352 lakh bales, compared to 380 lakh bales a year ago.

The domestic textile industry might bear the brunt of all this. Anticipation of low cotton production has already led to a sudden jump in cotton and yarn prices. This spells a tough time for the sector that is already under stress due to the skewed global demand for the last two years.