Cotton Production and Government Procurement Decline in Northern India

07-Apr-2025 05:33 PM

Bhatinda: Cotton production in the northern states of Punjab, Haryana, and Rajasthan has been on a steady decline in recent years, along with a drop in government procurement.

Nationally, cotton production has fallen from 365 lakh bales in 2019–20 to an estimated 294 lakh bales in 2024–25. Each bale weighs 170 kg.

The Cotton Corporation of India (CCI), which procures cotton at the Minimum Support Price (MSP), saw its purchases drop from a record 124.61 lakh bales in 2019–20 to just 32.84 lakh bales in 2023–24.

However, procurement has rebounded to 100 lakh bales so far in the current marketing season.

In the last two seasons, market prices remained above the MSP, limiting CCI’s procurement. This year, with softer prices, procurement has risen sharply.

Meanwhile, the area under cotton cultivation in Punjab continues to shrink, contributing to the overall production decline in the northern region.