India's Cotton Crisis: Plummeting Production and Rising Imports

India's cotton industry is facing a severe crisis, with the cultivation area decreasing by 14.8 lakh hectares in just two years. Production has also dropped significantly, falling by 42.35 lakh bales between 2024-25. This has led to a surge in cotton imports, which reached 29 lakh bales in the period from October 2024 to June 2025, the highest in six years.

The crisis is the result of a combination of factors, including falling yields, declining prices, and the government's decision to reduce import duties to zero. Farmers are receiving less money for their harvest, and the government has not provided adequate support through policies. Additionally, pests like the pink bollworm have been damaging crops, forcing farmers to spend more on pesticides.

Experts warn that if this trend continues, India may soon become fully dependent on cotton imports, just as it already depends on edible oils and pulses. The situation is alarming, as India is the second-largest cotton producer in the world, with nearly 24% of global production. However, the country's cotton yield is far below the global average, and even countries like Pakistan are outperforming India in this regard.

The government's decision to reduce import duties has further exacerbated the crisis, as it has opened the doors for cheaper imports, which will further reduce the income of Indian farmers. This is in contrast with the government's stated goal of promoting self-reliance in India.