The paper reveals that presently, there are various practices being followed by stakeholders to make production and processing environmentally sustainable. These include adoption of Bt cotton, organic farming, precaution in the use of chemicals and other practices. Survey findings shows that overall about 92 percent farmers (165) have adopted Bt cotton in the surveyed areas. Findings also show that farmers are satisfied with the cost and benefit from adaption of Bt cotton. Interestingly, the paper reveals that farmers and other stakeholders are aware of the environmental sustainability practices in cotton production but they find it difficult to practice it due to financial and technological constraints. It is also revealed that the impact of climate change on cotton yield, soil fertility is significant. The paper recommends the need for building capacity for environmentally sustainable practices, increased investments in environmentally friendly cotton production technologies, and promoting use of cotton by-products to facilitate sustainable production practices.