Telangana is India's third-largest cotton exporter.

In 2020-21, Telangana produced 57.97 lakh bales of cotton, making it the third-largest producer in India, behind Gujarat and Maharashtra. In 2021-22, it increased its output to 48.78 lakh bales.

As a result of the state government's efforts, Telangana is now the third-largest cotton grower in India and the top exporter in South India. In 2020–21, Telangana produced 57.97 lakh bales of cotton, putting it in third place behind Gujarat and Maharashtra. In 2021–22, that number dropped to 48.78 lakh bales.

In addition to being a top cotton producer, Telangana also offers a competitive cotton labor rate. While the hourly wage in Kerala is Rs 117.88, it is only Rs 98.36 in Telangana. For example, prices in BJP-controlled states like Gujarat and Karnataka range from Rs 35.16 to Rs 49.35.

On Wednesday, Darshana Jordash, the Union Minister of State for Textiles, presented all this information to the Lok Sabha. In response to a query from BRS MP Manne Srinivas Reddy, the Union Minister said India was a net cotton producer nation because output exceeded consumption.

Although India has imposed an import duty of 11% (including 5% Customs Duty, 5% AIDC, and 1% Cess) on cotton as of February 1, 2021, the Union Government has decided to keep cotton exports under Open General License (OGL) to protect the interests of the entire cotton value chain, including cotton farmers.

He also noted that free trade agreements had been made with the United Arab Emirates and Australia to facilitate access to foreign markets. These agreements were enacted on May 1, 2022, and December 29, 2022, respectively.