Carbon pricing would be the most structurally embedded risk and hardest to reverse. Carbon pricing is different as it sits directly on Scope 3, where 96–99% of apparel emissions occur. That means it’s embedded in Tier 2 manufacturing and upstream energy systems. Unless those systems decarbonise, cost exposure compounds year over year.
Cotton is a cash crop and has always given better profitability compared to others like peanuts. Before 2002, we had local varieties like Shankar-6. Yields were low, but returns were higher than other crops. In 2002–03, when BT cotton was introduced, it doubled yields from 250–300 kg per hectare to about 500 kg. Costs rose only 20–30%. Farmers prospered in those years.