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Economy News, Latest Economic News Today | The HinduBusinessLine

GE, HAL clinch tech deal on joint jet engine plan India rejects USTR allegations, seeks termination of Section 301 probe Indian automobile sales record highest-ever sales in FY26, first time after FY19: SIAM Madhya Pradesh CM says basmati rice from the State is exported to 47 nations 63 Moons’ cybersecurity arm pilots GPS-spoofing solution at Indian airports Highways ministry notifies amendment to streamline fee for overloaded vehicles on NHs Global aviation crisis deepens as fuel shortage, Iran conflict hit airlines TRI launches agri-voltaic project to help farmers earn double income Hotel industry to hit $31 billion in 2029; listed hotel firms set to add 70k rooms by 2030: CBRE Temperatures may trend up over North-West, Central India until weekend Reduction in airport tariff credit neutral, minimal impact on revenue: Ind-Ra Global coffee prices rise as fertiliser costs and West Asia tensions threaten supply Bluspring Enterprises to acquire LSG Sky Chefs India, enters aviation catering sector China says policy to improve relations with India remains unchanged amid Arunachal naming row Research firms divided over impact of below normal monsoon on food inflation Unnat Krishi Mahotsav concludes, farmers to emerge as energy, fuel & hydrogen providers, says Gadkari Airlines may get ₹5,000 crore credit support under proposed ECLGS variant How kashmir’s breakthrough is making Gucchi mushroom farming possible Centre not taking away State’s power on bonus for agri produces, says FM Sitharaman Carriers cut flights on cost pressures, uncertain demand GE Aerospace scales AI from pilots to production; India anchors global capability West Asia crisis may push India’s current account deficit to 2% of GDP: Crisil Tax Dept to resume Tiger Global reassessment, says GAAR relief won’t alter SC ruling Ceasefire talks fail to restore vessel movement in Strait of Hormuz, fate of 599 ships remain inconclusive DMRC launches mid-life refurbishment of Blue Line trains to enhance safety and passenger experience Retail inflation likely rose 3.5-4% in March India-UK free trade pact may come into force from second week of May: Official 'West Asia war a good opportunity for energy reforms, lower costs for industry' India’s marine exports surge to ₹62,408 crore in 2024-25, Govt sets ₹1 lakh crore target PM Modi to inaugurate Dehradun-Delhi Expressway on April 14 India’s economic growth journey huge opportunity for international partners: Kwatra From diesel to daylight: How government solar schemes are powering India’s farmers The next energy leap: Replicating ethanol’s success in diesel Delhi EV Policy: Electric 3-Wheelers Only by 2027, 2-Wheelers by 2028 Windfall levy on export bound diesel, ATF raised India-flagged LPG tanker Jag Vikram crosses Strait of Hormuz after US-Iran ceasefire Muted pricing power, rising costs to curb benefits of demand in cement sector: HDFC Securities Central Railway to run four special local trains for Ambedkar Jayanti Cotton Association revises output estimates for 2025-26 up at 324 lakh bales of 170 kg each Agtech marketing in the age of regional content and creator communities Rajnath Singh, Nitin Gadkari to join 3-day agri event at Shivraj’s home turf, inaugurated today How agripreneurship will drive improved rural livelihoods in India World’s largest tur producer, yet an importer: A self-sufficiency puzzle unfolding on ground Ethanol in diesel generators: India’s next practical step towards energy security How sustainable sourcing can unlock value in India’s agri-value chains West Asia Crisis: Induction cooking may consume 13-27 GW power Govt defers power plant maintenance for three months; 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Area under cotton shrinks in North India as farmers eye paddy
Vishwanath Kulkarni · 2026-06-17 · via Economy News, Latest Economic News Today | The HinduBusinessLine

Cotton acreage in North India has shrunk by about 22 per cent this kharif season as a section of farmers are seen preferring to plant paddy on assured procurement and better returns.

Cotton has been planted on about 9 lakh hectares (lh) this year in the North Zone in Punjab, Haryana and Rajasthan as against 11.56 lh a year ago.

As per Agriculture Ministry data, total cotton acreage across the country was 9.53 lh as of June 12, down 28 per cent from 13.19 lh a year ago, with planting going on in parts of Karnataka, Gujarat and Rajasthan among others.

Cotton sowing in North India takes place normally from mid-April to late May and has almost been completef for this year.

May rise in Rajasthan

This kharif the cotton area has dropped to less than one lh in Punjab to 0.80 lh against last year’s 1.19 lh as of June 11. Similarly, the area has reduced in Haryana to 2.92 lh compared with 3.94 lh a year ago. In Rajasthan, the area is down to 5.28 lh this year from 6.43 lh a year ago.

Atul Ganatra, Chairman – Crop Committee of Cotton Association of India (CAI), the apex trade body for the fibre crop, said though area has reduced in Punjab and Haryana, the sowing is going on in lower Rajasthan and upper Rajasthan. With parts of Rajasthan receiving rains, the cotton area will be maintained or may see an increase of 3-4 per cent, Ganatra said.

Cotton was planted on about 114.82 lakh hectares during 2025-26, according to the Agriculture Ministry data. For the 2026-27 marketing season, the Centre has increased minimum support price by ₹557 per quintal to ₹8,267 for medium staple and ₹8,667 for long staple.

High risk crop

“Farmers across North cotton zone are increasingly shifting to paddy because it offers greater income security through assured procurement and better returns, particularly after last year’s favourable rice harvest. In contrast, cotton is now perceived as a high-risk crop due to severe pink bollworm infestation, weather-related uncertainties and prolonged market prices below the MSP, leaving farmers with little confidence in its profitability,” said Bhagirath Chaudhary, Founder Director, South Asia Biotechnology Centre in Jodhpur.

“Additionally, delayed paddy transplantation has provided an additional advantage by creating a window for short-duration Zaid (summer) crops such as maize and moong, enabling farmers to enhance cropping intensity and generate supplementary income before rice planting. Cotton, on the other hand, faces prolonged heat stress during April and May, with many late-sown fields experiencing wilting, rot root and poor crop establishment. Together, these agronomic and economic factors have significantly strengthened the comparative advantage of paddy over cotton in the planting decisions of farmers across Punjab, Haryana and Rajasthan,” Chaudhary said.

Down over the years

Dilip Monga, former head of Central Institute of Cotton Research’s regional research station in Sirsa, said the area in North Zone has been on a continuous decline over the past few years.

Besides the problem of pink bollworm, cotton growers have faced issues with erratic weather such as excess rain during August-September last year which impacted the productivity and high temperatures during planting season, he said.

Besides, farmers fetch better returns from other crops such as paddy, which is prompting them to move away from cotton in the region, he said.

Published on June 17, 2026