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Summary
With output stagnating and imports rising, the Centre’s ₹5,659 crore Cotton Productivity Mission aims to lift yields, improve fibre quality and restore India’s textile export competitiveness.
The Centre has approved a ₹5,659 crore Cotton Productivity Mission (Kapas Kanti) over five years to revive India’s cotton economy at a time when output has stagnated, imports are rising and textile exporters face intensifying global competition.
The mission marks one of the most ambitious interventions in India’s cotton-textile value chain in recent years, linking farm productivity to manufacturing competitiveness and export growth.
Mint explains how the scheme seeks to lift yields, improve fibre quality and strengthen India’s textile export competitiveness.
How can the mission transform India’s textile sector?
The programme seeks to address multiple structural weaknesses at once—low farm productivity, inconsistent fibre quality, volatile raw material supply and rising import dependence.
Unlike earlier schemes focused largely on cultivation, this mission adopts a value-chain approach, connecting farm-level reforms with textile manufacturing, exports and global sourcing competitiveness.
Improving the availability of domestic raw cotton is critical. Textile manufacturers have increasingly struggled with supply shortages and quality inconsistencies. The push for extra-long staple (ELS) cotton is especially significant, as India currently imports large volumes of premium cotton used in high-value textile products.
Better quality and traceability could also strengthen the global positioning of the Kasturi Cotton brand as a premium Indian cotton label.
Why has the government launched the mission now?
The mission comes amid concerns over declining output and mounting stress in the textile sector.
According to agriculture ministry data, cotton production stood at 31.11 million bales in FY22 and rose to 33.66 million bales in FY23. It then slipped to 32.52 million bales in FY24, 29.72 million bales in FY25 and an estimated 29.1 million bales in FY26.
At the same time, demand continues to rise as India expands textile manufacturing. An industry report estimates consumption at 32.8 million bales, implying a deficit of 3.7 million bales.
The government aims to raise production to 49.8 million bales by 2030-31 from an estimated 29 million bales in 2025-26. Domestic demand is projected to rise to nearly 45 million bales by then.
Import dependence has surged. Cotton imports jumped from $579.21 million in FY24 to $1.2 billion in FY25, while exports fell from $972.17 million to $660.40 million over the same period.
What are the mission’s core goals?
The programme rests on three pillars:
- Raising cotton productivity
- Improving fibre quality
- Reducing import dependence
The government aims to nearly double productivity to about 755 kg lint per hectare, closer to the global average of 833 kg per hectare. Around 32 lakh cotton farmers across major producing states are expected to benefit.
Why is productivity still low?
India is among the world’s largest cotton cultivators by area, but yields lag behind competing nations.
Experts attribute this to multiple structural issues, including dependence on rain-fed cultivation in many cotton-growing regions, pest attacks such as pink bollworm, poor seed quality and limited adoption of advanced varieties, low mechanization and crop diversification, uneven technology adoption, inconsistent farm practices, among others.
How will ₹5,659 crore be deployed?
The mission has four major components:
1. Production and technology ( ₹3,804 crore)
Focus on high-density planting, ELS cultivation, improved practices and farmer training.
2. Research and inputs ( ₹555 crore)
Climate-resilient varieties, pest-resistant seeds and soil health initiatives.
3. Post-harvest management ( ₹1,000 crore)
Kasturi Cotton Bharat tagging, testing laboratories and skill development for ginning units.
4. Sustainability and alternative fibres ( ₹300 crore)
Promotion of sustainable practices and natural fibre diversification.
How critical is cotton to India’s economy?
Cotton sits at the heart of India’s textile ecosystem.
The textile and apparel sector contributes 8–10% of India’s merchandise exports and generates $35–40 billion annually. The government targets $100 billion in textile exports by 2030.
However, exporters face intense competition from Bangladesh, Vietnam and China, alongside raw material constraints.
Readymade garment exports declined to $15.77 billion in FY26 from $15.99 billion in FY25. Overall textile-related exports slipped to around $34 billion in FY26 from about $34.84 billion in FY25.
What do experts and farmers say?
Rahul Mehta, chief mentor of the Clothing Manufacturers Association of India (CMAI), said that India’s productivity remains low despite being one of the largest cotton producers. He said that the mission could improve self-sufficiency, ensure more stable cotton availability and strengthen the competitiveness of Indian textile products globally.
Farmers stress that implementation will be key.
Ganesh Nanote, a cotton farmer from Maharashtra’s Vidarbha region, said that better seeds, protection from pests and access to modern technology could help farmers improve yields and reduce losses. Farmers also expect stable prices and timely support mechanisms.
For the 2025-26 season, the government has fixed the minimum support price (MSP) at ₹7,710 per quintal for medium-staple cotton and ₹8,110 per quintal for long-staple cotton.
About the Author
Dhirendra Kumar
Dhirendra Kumar is a seasoned policy reporter with about 20 years of experience in deep, on-ground reporting across key economic and governance sectors. His work spans finance, public expenditure, disinvestment, public sector enterprises, textiles, trade, consumer affairs, and agriculture, with a strong focus on uncovering structural policy shifts and their real-world impact.<br><br>Kumar has been awarded the Chaudhary Charan Singh Award for Excellence in Journalism in Agricultural Research and Development, recognising his contribution to reporting on critical issues in the farm sector. He has also been a recipient of a fellowship in international trade from the National Press Foundation, which has further strengthened his coverage of global trade dynamics and their implications for India.<br><br>Kumar is known for breaking complex policy developments into clear, accessible stories. His reporting focuses on uncovering under-reported trends, explaining policy shifts, and helping readers stay informed about developments that shape India’s economic landscape.
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