Crisis in Punjab's Cotton Industry: Decline in Production
2026-04-30 13:20:45
Punjab's cotton industry in crisis due to shortage of raw materials, huge decline in production
Punjab's cotton-based industry is currently going through a serious raw material crisis. Punjab, which was once one of the major cotton producing states of the country, now has to depend on states like Maharashtra and Gujarat due to decline in local production.
At one time, cotton was cultivated in more than 7 lakh hectares in the state, which has now reduced to about 1.2 lakh hectares. In 2019 this area was 3.35 lakh hectares. According to experts, the main reasons for the decline in cotton cultivation are pest infestation, low yields and increasing trend of farmers towards other crops.
Industry representatives say that lack of improved and disease-resistant seeds in Punjab is also a major reason for declining production. On the contrary, in states like Maharashtra, more production is being achieved with the help of modern seeds.
According to the data, around 1.15 crore bales of cotton were produced in Maharashtra this season, while in Punjab it was limited to only 1.5 lakh bales. For this reason, the ginning and spinning units of the state have to import raw materials from outside.
The shortage of cotton has had a direct impact on the industry. While earlier there were 422 ginning units in Punjab, now their number has come down to just 25. Many units have closed down and some industries have shifted to other states.
To improve the situation, the state government has announced 33% subsidy on certified cotton seeds and has set a target of increasing the area to 1.25 lakh hectares by 2026. The government is also appealing to farmers to adopt cotton instead of paddy.
