India was the third biggest producer, after China and the USA, of cotton in the world between 1995-96 and 2005-06. In 2006-07, however, India, by producing 21.8 million bales (one bale of 480 lb) of world cotton (17.9 per cent), for the fi rst time, surpassed the USA’s cotton production level of 21.6 million bales (17.7 per cent) (USDA 2007). India has about 25 per cent of the world’s total cotton-growing area and about two-third of India’s cotton crop is grown under rainfed conditions. The land being rainfed cotton yield in India is very low, with an average yield of 467 kg/ha compared to the world average of 735 kg/ha during 2005-06. Cotton being the most important commercial crop in India, it provides a livelihood to more than 60 million people by way of its cultivation, processing and usage in the cotton textiles’ manufacturing. Further, cotton crop contributes about 30 per cent India’s GDP in the agricultural sector (CMIE 2007).