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The Silent Unraveling: India's Cotton Ginning Sector Faces an Existential Threat

  • Nishadil
  • November 23, 2025
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  • 3 minutes read
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The Silent Unraveling: India's Cotton Ginning Sector Faces an Existential Threat

It feels like just yesterday, or at least not that long ago, when the sight of sprawling cotton fields was a hallmark of Punjab's Malwa belt and many parts of Haryana. Fast forward to today, and you'd be hard-pressed to find those same vibrant swathes of white. This dramatic shift, you see, isn't just a change in landscape; it's a looming crisis for the entire cotton ginning sector, threatening to unravel an industry that's been a backbone of the region's rural economy for generations.

The numbers, frankly, are startling. In Punjab alone, cotton acreage has plummeted from a robust 6.22 lakh hectares just a decade ago (2014-15) to a meager 1.73 lakh hectares this past season. Haryana, while not quite as severe, has also witnessed a significant dip, from nearly 6.93 lakh hectares down to around 5.9 lakh hectares. When the raw material dries up like this, what happens to the processing units? Well, they struggle, immensely.

And struggle they are. Many of the hundreds of ginning mills spread across these two states – imagine about 400 in Punjab and 200 in Haryana – are operating at a fraction of their capacity. We're talking 20%, maybe 30% on a good day. It's no exaggeration to say that financial losses are mounting, pushing many unit owners to the very edge, with some staring down the barrel of irreversible closure. It's heartbreaking, really, to hear stories of families who've invested everything, now facing bankruptcy because the cotton simply isn't there.

So, what exactly triggered this agricultural exodus? It’s a bit of a perfect storm, if we’re being honest. The primary culprit, without a doubt, has been the relentless onslaught of pests, most notably the dreaded pink bollworm. Farmers have poured their sweat and resources into their fields, only to watch their yields decimated, leaving them with crushing losses. Can you blame them for seeking alternatives?

Indeed, they have found alternatives. Basmati paddy, for instance, has emerged as a particularly attractive option. With a relatively assured Minimum Support Price (MSP) and, crucially, a far lower risk of devastating pest attacks, it offers a stability that cotton simply can't match right now. It's a pragmatic choice for survival, even if it comes at the cost of another vital industry.

The ripple effects of this crisis extend far beyond just the gin owners. Consider the thousands of seasonal laborers, many of whom migrate from other states, who depend on these mills for their livelihood. As units cut back operations or close entirely, these workers are left stranded, facing unemployment and uncertainty. It's a profound human cost that often goes unseen.

Industry associations are, quite rightly, sounding the alarm bells. They're pleading with the government for intervention, advocating for better pest management strategies, timely compensation for farmers who stick with cotton, and perhaps even a more enticing MSP for the crop itself. The hope is that with the right support, farmers might be incentivized to return to cotton cultivation, breathing life back into this struggling sector.

Because at the end of the day, the cotton ginning industry isn't just about machines and fibers; it's about people, traditions, and the economic fabric of an entire region. Allowing it to wither away would be a significant loss, not just for Punjab and Haryana, but for India's broader agricultural and textile landscape. One can only hope that these urgent calls for action don't fall on deaf ears.

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