Cotton Acreage Likely to Rise Despite Softer Cotton Prices

11-Jun-2026 07:33 PM

Ahmedabad. Domestic cotton market prices have seen a slight softening since the deferral of import duties, coinciding with a sluggish monsoon progression. The monsoon has not yet reached Gujarat and Madhya Pradesh, and its reach in Maharashtra remains limited; however, southern states have received—and continue to receive—good rainfall. Farmers in Gujarat are showing immense enthusiasm for cotton cultivation, supported by the release of Narmada river water into canals for irrigation.

While the area under cotton cultivation has dropped sharply in the northern states of Punjab and Haryana, a rapid increase in sowing area is expected in Rajasthan. Cotton acreage is also likely to expand significantly in the central and western regions; farmers in top-producing states like Gujarat and Maharashtra, as well as in Madhya Pradesh, are expected to show greater interest in cultivating this vital fiber and cash crop. Similarly, the southern states of Telangana, Andhra Pradesh, and Karnataka may see a substantial rise in cotton cultivation areas.

It is noteworthy that the import duty on cotton has been deferred from June 1, 2024, to October 31, 2026, exempting importers from paying the 11% duty during this period. Arrivals of the new cotton crop will begin in October. Even if wholesale market prices remain low at that time, farmers are unlikely to face significant hardship.

The government has raised the Minimum Support Price (MSP) for cotton by ₹557 per quintal for the 2026-27 season; this brings the MSP for the medium-staple category to ₹8,267 per quintal and for long-staple varieties to ₹8,667 per quintal. The Cotton Corporation of India (CCI), the government agency, will be ready to procure cotton from farmers at these support prices.