Relevance: GS-3 (Agriculture, Rural Distress, Economy)
Source: The Hindu – Ground Zero Report; Ministry of Textiles; ICAR; CCI

Cotton-producing regions in Maharashtra, Gujarat, Telangana and Karnataka are again witnessing distress. Falling prices, rising cultivation costs, pest attacks and climate variability are pushing farmers into financial insecurity. Cotton supports over 60 lakh farming households and is integral to India’s USD 44 billion textile sector, making this crisis economically and socially significant.

India’s Cotton Farming Belt 

Cotton is grown mainly in the western, central and southern agro-climatic zones of India, covering Maharashtra, Gujarat, Telangana, Andhra Pradesh, Karnataka, Madhya Pradesh, Rajasthan and parts of Punjab and Haryana.

• The Central Zone (Maharashtra, Gujarat, MP) accounts for nearly 60% of India’s cotton area.
  
• Gujarat remains the largest producer, while Maharashtra has the largest acreage but lower yields.
  
• Vidarbha, Marathwada, Khandesh and Saurashtra form the core belt where climatic instability and pest attacks most severely affect farmer incomes.
  

This belt is highly rain-dependent, making it vulnerable to monsoon fluctuations.

The Distress: Region and Severity

1. Price Fall and Income Stress

• After peaking at ₹10,000–₹12,000 per quintal in 2022, cotton prices have dropped to ₹6,000–₹7,000 in many APMC mandis.
  
• The MSP for medium-staple cotton (2024–25) is ₹6,620, barely above cost of production.
  
• Rising expenses on seeds, labour and pesticides reduce net returns further.
  

2. Climate and Pest Risks

• Erratic monsoons, prolonged dry spells and unseasonal rains have reduced yields.
  
• Pink bollworm resurgence has eroded the effectiveness of Bt cotton.
  
• According to ICAR, pest-related losses can reach 15–20% of yield in affected districts.
  

3. Regional Patterns

The Larger Structural Problems

1. Monoculture Dependence: Many districts cultivate 70–80% of land under cotton, magnifying climate and market risks.

2. Input Cost Burden: Farmers often spend ₹15,000–₹20,000 per acre on pesticides alone due to resistance build-up.

3. Weak Procurement Mechanism: CCI intervenes only when market prices dip below MSP; most cotton sells through traders.

4. Global Slowdown: Sluggish demand from China and reduced global textile orders depress domestic prices.

5. Poor Market Practices: Moisture deduction norms and delayed payments reduce farmgate value.

Short-term Solutions 

• Aggressive MSP procurement by Cotton Corporation of India in distress-hit markets.
  
• Ensure timely payment using Direct Benefit Transfer.
  
• Provide subsidies under National Mission on Sustainable Agriculture for micro-irrigation and climate-resilient inputs.
  
• Fast-track crop loss compensation under PM-Fasal Bima Yojana (PMFBY) and simplify claim settlements.
  
• Regulate ginning and moisture norms through State Agricultural Marketing Boards.
  

Long-term Solutions (Structural Reforms)

1. Diversification

Promote pulses, sorghum, oilseeds and millets to break monoculture; incentivise through crop diversification schemes.

2. Research & Innovation

• ICAR and SAUs should accelerate development of bollworm-resistant and drought-tolerant cotton varieties.
  
• Encourage adoption of High Density Planting System (HDPS) to improve yields.
  

3. Strengthen Farmer Institutions

• Support Farmer Producer Organisations (FPOs) for input purchase and direct marketing.
  
• Promote digital marketplaces through e-NAM for transparent price discovery.
  

4. Improve Value Chain Competitiveness

• Upgrade ginning units under the Technology Mission on Cotton (revived).
  
• Reduce logistics cost by improving rural roads and cotton storage infrastructure.
  

Key Takeaways

• Cotton distress is a structural and recurring issue linked to climate, pests, markets and institutions.
  
• Relief requires short-term support and deep long-term reforms in seeds, markets and diversification.

Cotton distress reflects deeper agricultural vulnerabilities that demand coordinated economic, technological and institutional responses.

Mains Qn. : “Cotton distress in India is recurring and structural. Discuss the causes and suggest short-term and long-term policy interventions.”