By now, we have a fair understanding of the history of Vidarbha until the colonial takeover. Regardless of the political instability that marred the region over centuries, it remains to be seen why and how cotton became the mainstay of the region's economy ever since. Is it possible that the developments in cotton economy in one region structurally transformed cotton economy in faraway regions? Were there transnational impacts that the commodity has had over centuries that have not been analysed? In this context, major upheavals in the world cotton trade need to be accounted for. Prominent among these upheavals was the American Civil War that broke out in 1861. Furthermore, British trade policy—during and following the Company's prolonged domination over India—also influenced the directions and quantum of cotton trade of the region.

In this chapter, we present a sketch of how cotton became the staple of the American South and how the United States became the leading exporter of raw cotton in the world by the middle of the nineteenth century—a watershed in Vidarbha's economic history. In doing so, we examine how ‘King Cotton’ and its retainers were central to the American Civil War that disrupted the supply of raw cotton to the growing demand of the Lancashire mills. We locate the emergence of India in general and Berar and the Central Provinces in particular, on the world map of cotton through these tectonic developments. We also delve into changes in contemporary institutions and agrarian systems of the region following the colonial takeover. In essence, we give an account of the major events that shaped the extent and nature of expansion of cotton cultivation in the region. This account will demonstrate how Vidarbha farmers entered the metaphorical casino of gambling with cotton.

We posit that to characterize the cotton economy in colonial-era Vidarbha, it is necessary to identify underlying developments that fostered cotton expansion. We draw attention to major historical developments in faraway lands—the United States, Britain, and China—in conjunction with domestic factors that shaped the cotton economy even before the colonial takeover. Since the colonial takeover in 1853, there was a transformation of local institutions in the region. Traditional land revenue assessment and agrarian relations were dismantled, and property rights on cultivated land developed. Credit markets also underwent significant changes. There was considerable expansion of the railways and communication systems. There were several efforts to introduce new seed varieties.