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Abstract
Cotton is called as a crop of rich farmers as it requires huge investment the constant ensuring of water supply which is actually impossible to quite large number of small and marginal formers, and adequate attention has not been bestowed on its marketing. There is long chain of dependents on it such as farmers, banks, traders, commission agents, wholesalers, retailers and various other market machineries, substantial amount of farmers income is either wasted in the form of commission agent’s shares with low price for the product. Unlike the cultivation of many other commercial crops like sugar cane, cotton, sun flower etc., the cultivation of cotton generally done in medium scale and large scale holdings with minimum capital investments owing to farmer’s urgent need for money for the purpose of re-investment. So they are generally more anxious to disperse their produce soon after the harvest with the existing low price. This study analyses the economic indicators of cotton cultivation in Tamil Nadu.