This article analyses the marginalization of the native small-scale cotton growers during British colonial rule in the Western Cotton Growing Area (WCGA), Tanzania, and their struggle against it. Marginalization was practiced mainly by Indian cotton traders for three decades to maximize profit at the expense of natives who farmed the crop. The Indian traders who were licensed by the colonial authority to buy and export marginalized the growers through underpaying and cheating on them. From the 1930s local chiefs and their subjects (growers) began to protest against this situation, but were ignored by the colonial authority. At the end of the 1940s, growers formed groups which took initiatives that led to minimized marginalization with limited support from some colonial officials. Minimized marginalization did not imply control of the cotton value chain. With the support of native traders, local growers fought on until co-operatives were formed, which allowed them to gain the upper hand over the Indian merchants in the cotton value chain.