Cotton Prices Surge Amid Fears of Declining Production

Ahmedabad. Domestic cotton prices have begun to climb, driven by several factors: the impending end of the duty-free import period, concerns over a potential drop in production due to adverse weather and rainfall conditions, and a recovery in demand from textile mills.

Last week, prices rose by ₹3,000–₹4,000, reaching ₹68,000 per candy (356 kg). Arrivals of new cotton (kapas/seed cotton) are declining in key markets across major producing states.

In leading cotton-producing states like Maharashtra, Karnataka, and Telangana, deficient monsoon rainfall and high temperatures are negatively impacting both average yields and quality. Farmers have begun withholding their stocks, anticipating further price increases in the near future.

Meanwhile, the Cotton Corporation of India (CCI)—a government agency—is fully prepared to procure cotton from farmers at the Minimum Support Price (MSP). Furthermore, rising global cotton prices could lead to higher import costs for India. Compared to last year, the total area under cotton cultivation has seen a slight decline; while the acreage has increased in Gujarat and Telangana, it has decreased in Maharashtra and Rajasthan.