India's Cotton Sector
Structure and Vulnerability
India is the world's largest cotton producer, growing approximately 6 million tonnes annually, and the second-largest exporter after the US. Cotton cultivation in India spans approximately 12 million hectares, concentrated in Maharashtra (Vidarbha), Gujarat (Saurashtra), Andhra Pradesh, Telangana, and Rajasthan. It supports an estimated 60 million farmers and farm labourers.
Indian cotton's international competitiveness rests on price — Indian Shankar-6 cotton is typically 10-15% cheaper than US Pima or Upland cotton. However, Indian cotton faces recurring criticism over quality consistency, contamination (due to manual picking), and inconsistent staple length — factors that disadvantage it in high-value markets. These structural quality issues mean that US cotton, despite higher price, is preferred for premium garment manufacturing.
Bangladesh was India's largest cotton customer, absorbing the surplus that could not be sold domestically. A sharp reduction in Bangladesh's Indian cotton purchases would directly depress Indian farm-gate cotton prices, particularly in Maharashtra and Gujarat — regions already battered by crop cycles and farmer distress.
- India's annual cotton production: ~6 million tonnes (leading global producer)
- Major cotton states: Gujarat (~35% of output), Maharashtra (~22%), Telangana (~15%)
- Cotton supports ~7 million farmers directly in India; yarn and textile sector employs ~45 million
- India's cotton yarn exports to Bangladesh: $1.47 billion in 2024-25 (largest single buyer)
- Minimum Support Price (MSP) for cotton: ₹7,121/quintal (Fair Average Quality, long staple, 2025-26)
- MSP mechanism does not automatically protect farmers if market prices fall below MSP without government procurement
● Tracked since February 10, 2026 · last seen May 05, 2026 · updates as the daily brief publishes