In order to encourage better price for better quality product, Cotton Grading Scheme has been made operative. Visual grading was undertaken in all the 25 important markets . Three modern laboratories have been set up, one each at Rampuraphul, Malout and Mukatsar. Five more laboratories are being set up at Bathinda, Mansa, Abohar, Kotkapura, Gidderbaha with the help of Technology Mission on Cotton (Govt. of India). In these labs different quality Para- meters of cotton like fineness, maturity, strength, span length, ginning percentage & trash contents are numerically tested. The basic objective of grading is to get the proper price to producer and graded quality to purchaser . The grade is assigned to the produce (Cotton) before its sale so that farmers and purchasers stand educated about the quality of the produce ensuring remunerative price commensurate with quality. It helps both the seller and the buyer to transact the business on a dependable base. For farmers the grading tests are free whereas from traders a nominal fee is charged.