Reduced Cotton Production to Lower Farmers' Income

05-Jan-2026 01:56 PM

Mumbai. Domestic cotton production is estimated to decline by 1.7 percent to 292 lakh bales (170 kg each) during the current marketing season (October-September) of 2025-26 compared to 2024-25, which would be the lowest production in the last decade.

Simultaneously, wholesale cotton prices are also trading below the Minimum Support Price (MSP). This will reduce farmers' income and may dampen their enthusiasm for cultivating cotton in the next season.

According to a leading rating agency, the decline in cotton production is attributed to a reduction in sowing area, prolonged waterlogging in fields due to excessive rainfall, and pest and disease outbreaks in some areas. In many regions, farmers prioritized other more profitable crops, leading to a decrease in cotton cultivation.

Although the Cotton Corporation of India (CCI), an agency under the Union Ministry of Textiles, is procuring cotton from farmers at the Minimum Support Price in top producing states like Telangana, Maharashtra, Gujarat, Madhya Pradesh, Karnataka,

Andhra Pradesh, Punjab, Haryana, and Rajasthan, farmers in remote areas are being forced to sell their produce at significantly lower prices. This is likely to impact the rural economy.

According to the rating agency, while the average yield per hectare is expected to increase marginally by 1.8 percent during the current season compared to last year, the significant reduction in sowing area will result in lower overall production.

The area under cotton cultivation decreased by approximately 20 percent in 2025 compared to its peak level in 2021.

Given the prospect of lower cotton production, the central government had exempted cotton imports from the 11 percent customs duty in August 2025 until December 31, 2025. This duty was reinstated from January 1, 2026.