Material Insights · Understanding the Material World

Cotton: Extraction

Machines in Texas, hands in parts of South Asia

What this tab covers How it is mined, drilled or grown, and processed into a tradeable form: the main methods compared, their unit economics, by-products, and the companies that do this work globally and in India.

Cotton is a warm-season crop grown from Texas to Xinjiang, Gujarat, Mato Grosso and Punjab. Much of it is irrigated, and pests demand heavy spraying or genetically modified varieties. Picking is mechanised in the United States, Australia, Brazil and much of China, but still done by hand in parts of South Asia and Africa. Gins separate lint from seed; the seed is crushed for oil and feed meal, so cotton is a joint product. Lint is pressed into bales, then graded for staple length, strength and colour.

Cotton is an annual crop, so area can change every season. It grows in warm climates with a long frost-free period and needs plenty of water. Three systems produce most lint: high-input irrigated farming with very high yields (Xinjiang, Australia), large mechanised farms on rainfed or partly irrigated land (US, Brazil), and smallholder farming, much of it rainfed and hand-picked (India, Pakistan, West Africa). All cotton then passes through ginning, which splits seed cotton into lint and seed, and spinning. Yields differ fivefold across systems, which is why India, with the largest area, does not have the largest crop.

Methods compared

MethodShare of supplyTypical scaleRecovery / efficiencyBy-productsUnit cost
High-input irrigated, machine-picked (China Xinjiang, Australia)China 22.7% and Australia 5.1% of world lint output in 2023 (FAOSTAT)China 2.84 Mha; Australia 0.47 Mha in 2024 (FAOSTAT)seed cotton yield 6,589 kg/ha in China and 5,064 kg/ha in Australia (FAOSTAT 2024); at a 34% gin turnout that is roughly 1.7-2.2 t lint/ha (calculated)cottonseed (oil and meal), linters, gin trashn/a
Large mechanised farms, rainfed or partly irrigated (US, Brazil)Brazil 11.8% and US 10.6% of world lint output in 2023 (FAOSTAT); together 61% of world export value in 2024 (UN Comtrade)US 8.16 million acres harvested in 2026/27 (WASDE); Brazil 1.99 Mha in 2024 (FAOSTAT)US lint yield 790 lb per harvested acre (about 885 kg/ha) projected for 2026/27 (WASDE); seed cotton 4,283 kg/ha in Brazil and 2,860 kg/ha in the US (FAOSTAT 2024)cottonseedno production cost found; price reference only: US average farm price 62.2 cents/lb for 2025/26 and 77.0 cents/lb projected for 2026/27 (WASDE, Oct 2026)
Smallholder farming, mostly rainfed and hand-picked (India, Pakistan, West Africa)India 22.4% and Pakistan 7.0% of world lint output in 2023 (FAOSTAT)India 11.45 Mha in 2024, about 37% of world area (FAOSTAT); India 23.8 million bales in 2025/26 (WASDE)seed cotton yield 1,310 kg/ha in India and 1,713 kg/ha in Pakistan (FAOSTAT 2024), roughly 450-580 kg lint/ha at a 34% turnout (calculated)cottonseed (oil and cattle-feed cake), cotton stalks for fuelno production cost found; price reference only: India MSP for 2025-26 of Rs 7,710/quintal of kapas for medium staple (up Rs 589 from Rs 7,121) and Rs 8,110 for long staple (CCEA decision, 29 May 2025)
Ginning and spinning (processing route)all lintworld lint 24.7 Mt and cottonseed 41.0 Mt in 2023 (FAOSTAT)gin turnout about 34% lint and 56% seed by weight; oil about 10% of seed weight (FAOSTAT 2023, calculated)cottonseed, linters (cellulose for paper and chemicals), comber noil reused in coarse yarnsn/a

How each method works

High-input irrigated, machine-picked (China Xinjiang, Australia)

Fields are drip or furrow irrigated, planted densely, sprayed and machine-harvested. Xinjiang supplies most of China's crop. Australia grows almost entirely for export and swings with water allocations.

Highest yields in the world, but depends on scarce water; Xinjiang cotton faces US import bans under the Uyghur Forced Labor Prevention Act.

FAOSTAT 2023-2024 Large mechanised farms, rainfed or partly irrigated (US, Brazil)

Large farms plant genetically modified varieties and pick with module-building harvesters. In Brazil's Mato Grosso and Bahia much cotton follows soybeans as a second crop. Both countries export most of what they grow.

Reliable quality and large export lots; US output swings with Texas rainfall, Brazil's with the soybean calendar.

USDA WASDE, 10 Oct 2026; FAOSTAT 2024; UN Comtrade 2024 Smallholder farming, mostly rainfed and hand-picked (India, Pakistan, West Africa)

Millions of small farmers grow Bt cotton under monsoon rain, with some irrigation in Punjab, Haryana and Gujarat. Seed cotton (kapas) is sold to ginners or, when prices fall below the minimum support price, to the Cotton Corporation of India.

Low cash costs and huge area, but low yields, pink bollworm damage and heavy dependence on the monsoon.

FAOSTAT 2023-2024; USDA WASDE Oct 2026; Global Agriculture, 29 May 2025 (CCEA kharif MSP 2025-26) Ginning and spinning (processing route)

Saw gins (US, Brazil, Australia) or roller gins (much of India) separate fibre from seed. Lint is baled and classed, then mills open, card, comb and spin it into yarn of a set count.

Ginning is cheap and local; spinning is capital-intensive and has moved to China, India, Pakistan, Vietnam, Bangladesh and Turkey.

FAOSTAT 2023 Unit economics are indicative ranges from the sources named; costs vary widely by deposit, region and year.

Who does it: global

CompanyCountryActivityVolumeYearSource
Louis Dreyfus CompanyNetherlands/Francecotton merchantnot published n/a
Olam Agri (Olam Group)Singaporecotton merchant and ginner (Africa, Australia)not published n/a
ECOM AgroindustrialSwitzerlandcotton merchantnot published n/a
SLC AgrícolaBrazillarge-scale cotton, soy and maize growernot published n/a
Xinjiang Production and Construction CorpsChinastate-linked grower in Xinjiang; subject to US sanctionsnot published n/a

Who does it: India

CompanyCountryActivityVolumeYearSource
Cotton Corporation of India (CCI)Indiastate agency: buys kapas at MSP when prices fall below it, sells lint by auction100 lakh bales bought at MSP (525 lakh quintals of kapas, Rs 37,450 crore, about 34% of the crop) 2024-25 season (to 31 Mar 2025)AgroSpectrum India, 8 Apr 2025 (Ministry of Textiles)
Vardhman TextilesIndiayarn and fabric spinnernot published n/a
ArvindIndiadenim and woven fabricsnot published n/a
Welspun LivingIndiatowels and bed linen exporternot published n/a

India is the second-largest grower (22.4% of world lint in 2023, FAOSTAT) and second-largest user: 26.25 million bales of mill use against 23.8 million of output in 2025/26, so it turned net importer with 5.17 million bales of imports (USDA WASDE, Oct 2026). CCI bought 100 lakh bales at MSP in 2024-25, about 34% of a 294 lakh-bale crop, mostly in Telangana (40 lakh) and Maharashtra (30 lakh).