There is a spectacular shift in cotton growing areas in Karnataka. From traditional areas, it has spread to many nontraditional districts like Mysore, Shivamogga, Chamarajanagar, Davanagere etc. Hence, the present paper has made an attempt to analyse growth in area, productivity and production of cotton, profitability of cotton on different farm size and problems in production and marketing of cotton crop in the non-traditional cotton producing areas of Karnataka. The compound growth rates of area, production and productivity of cotton crop during the period 1997-98 to 2009-10 were worked out using exponential growth function. Results revealed that growth in area was negative for all the three districts, except Mysore district, which observed positive, but non-significant growth rate (18.92%). The production growth rates of cotton crop were positive in Davanagere (4.16%) and Mysore districts (10.67%), but were non-significant. Whereas, Chamarajanagar (-27.66%) and Shivamogga districts (-14.21%) exhibited negative and significant growth rates. Cotton yield in Chamarajanagar (-4.62%) and Mysore (-6.94%) districts experienced a negative growth rate, whereas Davanagere (7.57%) and Shivamogga

(1.76%) districts showed positive growth rate. But in all the four districts, the growth in yield was found to be nonsignificant. The cost incurred in cultivation of Bt cotton was high in large farms (` 39047 ha-1), compared to small farms (` 34787 ha-1). Net returns were also high on large farms (` 76551 ha-1) compared to small farms (` 54736 ha-1) because of higher yield levels on large farms. The major problems faced by the farmers in production of cotton were low yield, high seed cost, non-availability of quality seeds and pest occurance. The problems in marketing of cotton were lack of regulated markets, large price spread, high commission charges, lack of transport facilities, non-remunerative price and lack of grading facilities.