Cotton Industry in India: Evolution, Challenges & Way Ahead

Table of contents

India’s cotton industry has a long and rich history dating back to the Indus Valley Civilization, with evidence of cotton use found in Mohenjodaro and Mehrgarh. As one of the world’s largest cotton producers, India plays a central role in the global textile and apparel industry.
However, despite this prominence, India faces significant challenges in terms of productivity, innovation, and global competitiveness. This paradox reflects the complex interplay of technological adoption, policy decisions, and historical influences that have shaped the Indian cotton sector.

Historical Background of Cotton in India

Indian cotton textiles were renowned worldwide for their quality and craftsmanship. The flourishing handloom sector made cotton a major export commodity, with key production centers in regions like Gujarat and Tamil Nadu.
British policies systematically deindustrialised India’s cotton industry by turning it into a raw material supplier for British mills. This led to the decline of indigenous textile industries and adversely affected local artisans.
India prioritised self-sufficiency by reviving cotton production through state intervention, focusing on industrialisation and farmer support.
India focused on self-sufficiency, establishing the Cotton Corporation of India (1970) and adopting hybrid (H-4, 1970) and Bt cotton (2002) to boost yields, though challenges like pest resistance and policy stagnation remain.

Technological Evolution and Its Impact

Bt Cotton Revolution: Approved in 2002, Bt cotton initially boosted yields and reduced pesticide use, covering 90% of cotton farms by 2014. However, over-reliance on a single technology led to pest resistance (E.g., pink bollworm), causing a 35% yield decline.
Mechanisation & Irrigation: Unlike the U.S. and Brazil, India relies on manual labour and rain-fed farming. Only 30-33% of farms use modern techniques like drip irrigation, limiting productivity.
R&D Deficit: Inadequate public research and regulatory delays have hindered climate-resilient and pest-resistant seed development.

Policy Choices and Their Consequences

MSP and Input Subsidies: While MSP provides a safety net, it has led to the over-cultivation of cotton in ecologically unsuitable regions (E.g., Maharashtra, Telangana), resulting in water stress & crop failures.
Export Restrictions: Frequent bans and restrictions on cotton exports disrupt market stability, discourage private investment, and diminish India’s credibility as a global supplier.
Regulatory Hurdles in GM Technology: Despite the success of Bt cotton, newer GM variants, such as herbicide-tolerant Bt (HTBt), remain unapproved, hindering innovation and leaving Indian farmers at a technological disadvantage.

Comparison with Global Cotton Leaders

India, despite being one of the largest cotton producers globally, lags behind other leaders in terms of yield and efficiency. A comparative analysis with China, the United States, and Brazil highlights key technological advancements, policy frameworks, and structural differences:

United States: The U.S. leads in mechanised cotton farming, achieving yields of over 1000 kg per hectare. It has fully adopted genetically modified (GM) cotton, utilises AI-driven precision agriculture, and benefits from a stable policy environment, ensuring high productivity and efficiency.
China: China excels through large-scale cooperative farming, extensive biotechnology innovations, and state-supported research. It achieves yields of approximately 1700 kg per hectare and has successfully integrated cotton farming with its flourishing textile industry, maximising value addition.
Brazil: Despite being a late entrant, Brazil has emerged as a major cotton exporter by adopting sustainable agricultural practices, such as integrated pest management (IPM) and zero-tillage farming. Public-private research collaborations, led by EMBRAPA (Brazilian Agricultural Research Corporation), and export-oriented policies have enabled Brazil to achieve yields of around 1800 kg per hectare.

Challenges in India’s Cotton Industry

Yield Stagnation: Despite cultivating 37% of the world’s cotton area, India’s yield per hectare remains low due to poor seed quality, outdated practices, and limited access to modern technologies.
Pest Resistance: Pests like pink bollworm have developed resistance, exposing the limits of Bt cotton. Monoculture and over-reliance on a single technology have worsened this issue.
Climate Change: Cotton is highly sensitive to temperature and water stress. Erratic monsoons and rising temperatures make farming riskier, particularly in regions like Vidarbha and Marathwada.
Farmer Distress: High debt, crop failures, and market volatility have led to high suicide rates among cotton farmers, underlining the shortcomings of existing policies.
Water Scarcity: Cotton’s water-intensive nature contributes to groundwater depletion, especially in regions like Gujarat and Maharashtra.

Government Initiatives to Boost Cotton Production in India

Cotton Corporation of India (CCI): Established in 1970 to ensure fair prices for farmers through Minimum Support Price (MSP) operations and stabilise market fluctuations.
Technology Mission on Cotton: Launched in 2000, this initiative focuses on enhancing cotton productivity, quality, and market competitiveness through improved seeds, irrigation, and modern technologies.
Bt Cotton Adoption: Approved in 2002 as India’s first genetically modified (GM) crop, this development has led to increased yields, reduced pesticide usage, and reaching over 90% by 2014.
Soil & Water Conservation Schemes: This encompasses initiatives like the Soil Health Card Scheme and Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), which promote sustainable farming practices through better soil management and irrigation support.
National Technical Textiles Mission: Launched in 2020, this mission aims to enhance research, innovation, and value addition in cotton-based technical textiles.
Amended Technology Upgradation Fund Scheme & Market Access Initiative Scheme: These schemes provide incentives for upgrading technology and enhancing productivity.
SAMARTH Scheme: This initiative aims to train 10 lakh individuals to address the shortage of skilled labor in the textile sector, positively impacting cotton production.
Mega Investment Textile Parks (MITRA): This program establishes seven textile parks over three years to boost investment, enhance infrastructure, and make the textile industry globally competitive.
Cott- Ally Mobile App: This application provides cotton farmers with essential information on MSP, procurement centers, payments, and best farming practices to facilitate better decision-making.

Way Forward

To strengthen India’s cotton sector and enhance global competitiveness, the following key interventions are needed:

Strengthen R&D: Invest in high-yield, pest-resistant, and climate-resilient seed varieties through public-private partnerships (PPP).
Approve Next-Gen GM Cotton: Expedite Herbicide-Tolerant Bt (HTBt) cotton approval to enhance productivity and reduce input costs.
Promote Mechanization & Precision Farming: Expand custom hiring centers (CHCs) and promote drip irrigation, AI-driven pest control, and fertigation for resource efficiency.
Reform MSP & Subsidy Policies: Align MSP with market trends and introduce direct benefit transfers (DBT) for targeted support.
Ensure Stable Export Policies: Avoid frequent export bans to attract private investment and strengthen India’s global cotton market presence.
Strengthen Extension Services: Upgrade Krishi Vigyan Kendras (KVKs) and digital platforms for real-time farm advisories.
Develop Cotton-Textile Linkages: Strengthen farmer-producer organisations (FPOs) and promote integrated cotton-to-textile value chains for better income generation.
Enhance Branding & Market Access: Establish ‘Made in India’ premium cotton branding to increase global demand and domestic value retention.

“From ancient looms to modern fields, cotton weaves India’s economic & cultural fabric.” To reclaim its global leadership, India must transform its cotton sector into an innovation-driven powerhouse, integrating sustainability, precision farming, and value addition, ensuring every thread spun reflects resilience & reform.

Reference: Indian Express | PMFIAS: Cotton Production

PMF IAS Pathfinder for Mains – Question 129

Q. Examine how technological advancements and policy choices have influenced the growth and global competitiveness of India’s cotton industry. (10 Marks) (150 Words)

Approach

Introduction: Briefly introduce India’s cotton industry and its relevance for India.
Body: Discuss the technological advancements and policy choices that have influenced the competitiveness of India’s cotton industry.
Conclusion: Summarise the need for synergy between technology and policy and emphasise sustainable, innovation-driven growth to reclaim global leadership.