The pest infestation marks the third consecutive season of loss.
Punjab police has registered five cases against distributors for the alleged supply of spurious pesticides responsible for cotton crop damage in Malwa region. Many farmers have killed themselves after their crop was infested with pests despite all precautions.
The state government has formed a Special Investigation Team or SIT to probe into the allegations by farmers.
The state's agriculture department has taken more than 200 samples from Ludhiana, Bhatinda, Muktsar, Fazilka, Mansa and Ferozpur and has also registered complaints against dealers with the police. The department has also been directed to plug sale and storage of spurious pesticides.
Punjab Deputy Chief Minister Sukhbir Singh Badal has directed the Director General of Police to register cases right up to the level of manufacturers of spurious pesticides.
Mr Badal said that "Police has conducted raids" and that anyone involved in the sale of spurious pesticides and seeds "will not be spared".