New Delhi, July 20: India holds the top position globally in cotton acreage and ranks second in production and consumption. In the fiscal year 2025-26, the country’s cotton production reached 2.909 million bales, while domestic consumption soared to 3.28 million bales, according to an official fact sheet.
A report released by the government indicates that the cotton sector contributes approximately 19% to global fiber production. To enhance cotton production, recent government initiatives have focused on improving productivity, quality, market access, and value addition.
The Minimum Support Price (MSP) procurement scheme provides price support to farmers during market downturns. Additionally, the Cotton Productivity Mission aims to boost cotton production to 4.98 million bales by 2031.
According to the government, initiatives like technology demonstrations, digital procurement systems, and traceability are strengthening the competitive edge of Indian cotton. These efforts are increasing productivity, improving quality, and solidifying India’s position in the global cotton economy.
Due to its economic significance, cotton is often referred to as ‘white gold’ in India. Cotton is cultivated across approximately 11.484 million hectares, supporting the livelihoods of around 6 million cotton farmers. Furthermore, 40 to 50 million people are employed in cotton processing, trading, and related activities.
Besides textile manufacturing, cotton fiber, yarn, fabric, and garment exports play a crucial role in earning foreign currency. India maintains a strong presence in the global cotton trade.
In the fiscal year 2024-25, India is estimated to have exported 1.8 million bales (0.31 million metric tons) of cotton, accounting for about 3.37% of the global total of 54.169 million bales (9.21 million metric tons). This highlights India’s significant role as an exporter in the international cotton market.
India exports cotton to several major markets, reflecting the robust and diverse global demand for Indian cotton. In terms of value, India’s cotton exports reached $1.149 billion in the fiscal year 2024-25. The United States remained the largest market for Indian cotton products, accounting for 26.35% of exports, followed by Bangladesh at 19.81% and Sri Lanka at 5.11%.
Other key export destinations included the United Kingdom (2.38%) and the United Arab Emirates (2.32%). This export pattern underscores the diverse global demand for Indian cotton.
Cotton production in India is primarily concentrated in nine major states, categorized into three agro-ecological zones: the northern region includes Punjab, Haryana, and Rajasthan; the central region comprises Gujarat, Maharashtra, and Madhya Pradesh; and the southern region features Telangana, Andhra Pradesh, and Karnataka. Additionally, cotton is also cultivated in Odisha and Tamil Nadu.
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