Cotton Production Continues to Decline

26-Nov-2025 09:03 PM

New Delhi. Data from the Union Agriculture Ministry shows that cotton production in the country, after reaching a high of 352.48 lakh bales (each bale weighing 170 kg) in the 2020-21 season, declined to 311.18 lakh bales in the 2021-22 season, but recovered to 336.60 lakh bales in the 2022-23 season.

Production has been declining steadily thereafter. According to official data, cotton production is projected to decline to 325.22 lakh bales in the 2023-24 season and to 297.24 lakh bales in the 2024-25 season. Production is also projected to decline to 292.15 lakh bales in the current 2025-26 season.

Cotton is a Kharif season industrial crop. Due to weak market prices, farmers' enthusiasm and interest in cotton cultivation is declining, leading to a decline in the area under cultivation.

This year, cotton acreage decreased in both major producing states, Gujarat and Maharashtra, and the crop was also damaged by natural disasters in several states.

In response, the government exempted cotton imports from customs duties until December 31, 2025, leading to a significant influx of cotton from foreign countries.

Due to weak international market prices and the absence of customs duties, imports of cheap cotton into the country have increased rapidly, putting pressure on prices.

Despite weak production, the domestic market price of cotton is trading below the Minimum Support Price (MSP), forcing the government agency, the Cotton Corporation of India, to purchase large quantities of cotton from farmers at the MSP.