The Indian Cabinet on Tuesday approved the much-awaited Mission for Cotton Productivity with an estimated expenditure of ₹5,659.22 crore over a five-year period (2026–27 to 2030–31) which is aimed at addressing the sector’s bottlenecks, declining growth, and quality concerns.

The Cotton Mission was proposed by Finance Minister Nirmala Sitharaman in her Budget speech in February 2025 and the government has formulated it after 15 months.

“The Mission envisages accomplishing the production of 498 lakh bales (170 kg each bale) of cotton by enhancing lint productivity from 440 kg/hectare to 755 kg/hectare by 2031. Approximately 32 lakh farmers will be benefitted leading to self-reliance. Promotion of Kasturi Cotton Bharat for traceability and certification, targeting trash reduction <2 per cent and promotion of natural fibres like flax, ramie, sisal, milkweed, bamboo and banana. This is a milestone in making the country self-reliant in Cotton Sector,” the government said in a statement.

In 2025-26, India’s cotton production dipped to 290.91 lakh bales (of 170 kg each bale) from 297.24 lakh bales in 2024-25 despite the acreage remaining stagnant at 114.8 lakh hectares in the past two years, after dropping from a high of 129.27 lakh hectares in 2022-23.

More assured returns from maize and paddy, as well as crop risk from pink bollworm (PBW) pest, are driving cotton farmers to cut area. In past six years, cotton area has shrunk by a maximum of 20 lakh hectares – among all other crops, data show.

Agri Ministry to implement

According to Cotton Association of India (CAI) estimates, in 2025-26 season (October-September) the country’s production may be 324 lakh bales, consumption 315 lakh bales, import 47 lakh bales and export 15 lakh bales. The trade body also has pegged the closing stock on March 31 at nearly 292 lakh bales.

The Mission will be implemented by the Ministry of Agriculture and Farmers Welfare and Ministry of Textiles, involving 10 institutes of Indian Council of Agricultural Research (ICAR), one institute of Council for Scientific and Industrial Research (CSIR), and 10 centres of All India Coordinated Research Project (AICRPs) on Cotton operating in different State Agricultural Universities (SAUs) of major cotton growing states.

Initially, 140 districts will be focussed in 14 States through State Department of Agriculture and ICAR for upscaling the technologies by involving 2000 ginning/ processing factories.

5F vision

businessline has earlier reported about the Mission plan when it was awaiting Cabinet nod and according to sources from the overall outlay of ₹5,659.22-cr, the Textile Ministry will spend about ₹1,100 crore, Department of Agriculture and Farmers’ Welfare over ₹4,000 crore and ICAR less than ₹600 crore.

The mission aligns with the 5F vision (Farm, Fibre, Factory, Fashion, Foreign) of the government, the statement said. The Mission will focus on enhancing cotton productivity through development of High yielding variety (HYV) seeds resistant to disease and pests, scaling up of existing and latest crop production technologies through state governments, Krishi Vigyan Kendras, and State Agricultural Universities (SAUs) through large-scale promotion and adoption of latest crop production technologies, ensures least contaminant cotton supply to industry, and promote high-quality cotton exports, it said.

The five-year expenditure as approved will be used for development of high-yielding, climate resilient, pest-resistant seeds, and other production/protection technologies, upscaling improved cotton production technologies like High Density Planting System (HDPS), Closer Spacing (CS), Integrated Cotton Management, and promotion of Extra Long Staple (ELS) Cotton. Besides, it will help augmenting quality of cotton through capacity building and promoting modernization of ginning and processing factories, including adoption of best processing practices.

Mission areas

“Strengthening cotton testing infrastructure across the country with modern, standardized, and accredited facilities to ensure reliable quality assessment and global benchmarking. Robust branding and traceability initiatives under Kasturi Cotton Bharat to position Indian cotton as a premium, sustainable, and globally trusted product,” the government said outlining the areas of the Mission.

The Mission also will help the government in empowering farmers through digital integration of agri market yards (mandis), enabling transparent price discovery, direct market access, and improved realization through e-platforms. Promotion of cotton waste recycling and circular economy practices to enhance resource efficiency, reduce environmental footprint, and generate additional value streams for the industry is another objective of the Mission.

The government will also promote diversification of India’s fibre base by including natural fibres like flax, ramie, sisal, milkweed, bamboo and banana and advancement of environmentally sustainable textile production and innovations. “Its (natural fibres) strategic integration and promotion will complement cotton and align India’s textile sector with evolving global demand patterns,” the government said.

Published on May 5, 2026