The Press Information Bureau (PIB) recently released a landmark report titled “White Gold: The Story of Indian Cotton”, tracing cotton’s journey from farm to farm and highlighting government programs aimed at increasing productivity, quality and marketability. This makes cotton, one of India’s oldest commercial crops, an important topic for both basic and large-scale planning, which affects agriculture, commerce and public policy.
Understanding the basics
Cotton is called “white gold” because of its economic importance in India. It supports the livelihood of about 6 million cotton farmers and provides employment to another 40-50 million people in processing and marketing. It also earns a lot of foreign exchange through the export of yarn, yarn, textiles and clothing.India has a unique role in the global cotton economy:
- First in the world to grow cotton
- Second in production and consumption worldwide
- The only country that grows all four known types of cotton
- They account for about one-fifth of the world’s fiber production
How it works
- Varieties and hybrids: India grows all four types of cotton: G. Arboreum and G. Herbaceum (Asian cotton), G. Barbadense (Egyptian cotton), and G. Hirsutum (North American cotton). G. Hirsutum accounts for about 90 percent of India’s cotton hybrids, and all Bt cotton varieties grown in the country are from this species.
- Bt cotton: Bt stands for Bacillus thuringiensis, a pathogen. Bt cotton is genetically modified to take genes from this bacterium, giving it resistance to bollworms. Introduced commercially in 2002, it reduced bollworm damage and reduced reliance on pesticides, resulting in increased farm profits over time.
- Standard length: Cotton fibers are characterized by their length, which determines the quality and use, from the short type (20 mm and below) to the long length (32.5 mm and more). India produces all kinds.
- Cultivation Process: About 62 percent of India’s cotton is rain-fed, while the remaining 38 percent is irrigated. Production is measured in bales, where one bale weighs 170 kg.
- Geographical Spread: Farming is concentrated in nine main districts in three regions:
- Northern Zone: Punjab, Haryana, Rajasthan
- Central Zone: Gujarat, Maharashtra, Madhya Pradesh
- Southern Zone: Telangana, Andhra Pradesh, Karnataka
Odisha and Tamil Nadu also grow cotton outside these areas.
Regulatory bodies and policies
- Cotton Corporation of India (CCI): The agency that oversees the Minimum Support Price (MSP) project. It takes steps to buy cotton when market prices fall below the MSP. Its procurement network has expanded from 508 locations in 2024-25 to 571 in 2025-26, covering 152 districts in 11 states.
- Commission for Agricultural Costs and Prices (CACP): It recommends MSP for cotton every year (October to September), based on the quality of medium cotton and tall cotton crops (kapas). The aim is to ensure that farmers get at least 50 percent of the cost of cultivation.
- Cotton Production: The five-year project launched in 2025-2026 with a budget of Rs. 5,659.22 million. It focuses on developing weather-resistant and pest-resistant cotton varieties, with a special focus on Extra Long Staple (ELS) cotton. It follows the vision of “5F”: farm, fiber, factory, fashion, outdoor. The project aims to raise the crop from 297 lakh to 498 lakh by 2031, covering 24 lakh hectares in 140 districts in 14 districts, benefiting about 32 lakh farmers.
- Special Duty on Cotton (under NFSM): Running from 2023-24 across 8 major cotton producing countries, the project showcases technologies such as High-Density Planting System and Closer Spacing Planting System. Field trials found yields of about 40 percent under HDPS and over 32 percent under near-field conditions.
- Kapas Kisan App: A mobile app for MSP procurement that allows farmers to self-register, book shop, receive Aadhaar-linked payments and get real-time SMS updates. More than 41 lakh farmers have registered.
- Kasturi Cotton Bharat: The marketing and traceability project launched by the Ministry of Textiles, CCI and TEXPROCIL, with an investment of Rs. 30 million. It certifies long products (28 mm and above) and ELS cotton (35 mm and above) using QR-based, blockchain-backed traceability, positioning Indian cotton globally as a quality symbol.
India’s position
- Cotton production stands at 290.91 lakh bales in 2025-2026 (provisional), and domestic consumption stands at 328 lakh.
- The MSP for 2026-27 is at Rs. 8,267 per medium quintal and Rs. 8,667 per quintal of long cotton, an increase of Rs. 557 more than last year for both.
- Cotton exports in FY25 were worth $11.49 billion, with the United States being the largest destination (26.35 percent), followed by Bangladesh (19.81 percent) and Sri Lanka (5.11 percent).
- Beyond textiles, the cotton plant produces edible oil (called “heart oil” because of its polyunsaturated fats), animal feed, vegetable oil from the stalks, and surgical cotton from short fiber.
Prelims point box
Great question
“Cotton is often called the white gold of India, yet harvesting remains difficult compared to its counterparts around the world.” Look at the factors affecting the cotton harvest in India and discuss the government’s recent efforts to address them. (250 words)
Try it yourself
1. Which type of cotton makes up about 90 percent of the cotton produced in India?(a) G. Arboreum (b) G. Herbaceum (c) G. Hirsutum (d) G. BarbadenseAnswer: (c)2. Consider the following sentences:
- India ranks first in the world in cotton cultivation.
- India is the world’s largest producer of cotton. Which of the statements given above is correct?
(a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2Answer: (a)3. Which of the following organizations has the lowest support price for cotton?(a) Cotton Corporation of India (b) Commission for Agricultural Costs and Prices (c) Ministry of Textiles (d) TEXPROCILAnswer: (b)4. “Kasturi Cotton Bharat” aims to:(a) Providing crop insurance to cotton farmers (b) Testing, certification and branding of Indian cotton (c) Free distribution of Bt cotton seeds (d) Implementation of MSP for cotton.Answer: (b)5. Which of the following regions of the state and cotton are best suited?(a) Telangana – Northern Zone (b) Gujarat – Southern Zone (c) Punjab – Northern Zone (d) Maharashtra – Southern ZoneAnswer: (c)
Five important words to remember
- Kapas – uncut cotton, the form in which MSP is declared.
- Bt cotton – genetically modified cotton that carries the bollworm resistance gene of Bacillus thuringiensis.
- Length – The length of the cotton, which is used to classify the color (short to long).
- Bale – A commercial unit of cotton, equal to 170 kg.
- ELS Cotton – Extra Long Cotton, with a length of 32.5 mm and more, valued for high quality fabrics.
Quick Q&AQ: Why is cotton called “white gold”?Because of its large role in employment, the livelihood of farmers is foreign exchange through textile exports.Q: What is the difference between MSP and market price?MSP is a fixed fixed price set by the government, while the market price fluctuates based on demand and availability. Consumer organizations like CCI buy at MSP when market prices fall.Q: Why is Bt cotton controversial despite its benefits?Although it has reduced pest damage and pesticide use, concerns remain over seed prices, pest resistance over time, and approval processes for new GM practices.