Cottonseed could either be processed by the traditional crude method of crushing seed without delinting in undecorticated form or by scientific processing of cottonseed, which involves removal of linters, decortication, separation of hull, expelling, solvent extraction and refining of oil. Scientific processing results in extraction of nearly entire cottonseed oil, while the oil cake obtained by traditional method still contains about 7% residual oil. This high residual oil is not required by the animals but ironically much in demand because of misconception among the dairymen. The cottonseed meal obtained through scientific method contains negligible oil and has very high by-pass type protein content of 40 to 42%. In international market trading takes place for cottonseed extraction only and not for undecorticated cottonseed oilcake, but in India it’s the latter that calls the shots. In India the major reason for non-adoption of scientific processing rests on economics. Net return from scientific processing of cottonseed is negative in comparison to traditional method. This negative net return for scientific processing could be attributed to both high demand and thus the higher price for undecorticated cake and falling export of cottonseed extract. On export front too situation is not very encouraging, there has not been any export of cottonseed extract since 1997-98. This downslide has been caused by very low or no oil in cottonseed extract rendering it unattractive as cattle feed and also by high cost of decortication at domestic level making it uncompetitive in international market.