Report

Building resilience for cotton farmers in India: evidence from Gujarat and Maharashtra

Think tank: IIED

Author(s): Various authors

September 30, 2024

This report from UK think tank IIED explores the vulnerabilities of cotton farmers in the Indian states of Gujarat and Maharashtra.

India is the world’s largest cotton producer, accounting for nearly a quarter of global production. The cotton sector is crucial for India’s economy and supports the livelihoods of approximately six million farmers. However, climate change – specifically more frequent periods of extreme heat – poses a significant threat to the livelihoods of the smallholder farmers, especially women, who depend on this crop, and it is a critical risk to the global textile supply chain.

Crop insurance could help farmers manage the risks of an uncertain future. But there is room for improvement in its coverage, affordability and effectiveness. The links between crop insurance and other risk reduction and adaptation measures, including government programmes and community-led initiatives, could also be better understood.

This study explores the vulnerabilities of cotton farmers in the Indian states of Gujarat and Maharashtra. Based on interviews and focus groups with farmers, it reveals their perceptions of and responses to climate and other shocks, and the current and potential use of insurance as a risk management tool. Our hope is that insights derived from this research can inform risk-mitigating decisions by different actors in the cotton sector. It provides recommendations for governments, businesses, insurance and finance providers, and farmer organisations.