Shrinking yields in the world's second-largest producer, India's cotton industry has prompted the Indian government to launch the National Cotton Productivity Mission, a comprehensive strategy focusing on crop diversification, significant yield improvement, introducing new, high-quality seed varieties, and promoting mechanized farming practices. These measures aim to revitalize India's cotton economy, which has been impacted by inconsistent yields.
According to the agriculture ministry, India's cotton output has steadily declined, from approximately 33.7 million bales in FY23 to an estimated 30.7 million bales in FY25. Moreover, India's cotton yield, around 465 kg per hectare in FY25, is significantly lower than China's average of over 2,170 kg/ha. China is currently the world's largest cotton producer, accounting for 26 per cent of global production, while India holds the second spot with 21 per cent.
As part of this five-year mission, the textiles ministry, in collaboration with the agriculture ministry, is consulting with experts, farmer groups, and state governments. Its aim is to double the yield from 465 kg/ha to 1,000 kg/ha across 11 major cotton-growing states like Maharashtra, Gujarat, Telangana, and Andhra Pradesh.
The declining yields have directly impacted cotton prices, which have risen from Rs 7,100-7,500 per quintal in 2024 to Rs 7,600-7,900. This price surge is making operations unviable for spinning mills, with some already curtailing operations.
Emphasizing on the urgency to improve export-led growth, Prabhu Dhamodharan, Convenor, Indian Texpreneurs Federation, says, with 60-65 per cent of India's apparel exports being cotton-based, higher domestic cotton prices, driven by poor yields and increased minimum support prices, are making Indian cotton less competitive globally. Yield improvement is the ‘only sustainable way forward,’ he asserts.
While India's cotton yarn exports rose to $12.04 billion in FY25, cotton imports also increased, to 2.15 million bales during October-March FY25. The National Cotton Productivity Mission is in its early stages, with further consultations planned.
