★ Domestic cotton prices have come under pressure following the government's decision to allow duty-free cotton imports from June 1 to October 31. In response, the Cotton Corporation of India (CCI) has reduced its 2025-26 season cotton selling price by another ₹700 per candy (356 kg).

★ According to iGrain India, several spinning mills have already started booking import contracts, giving buyers more options through imported cotton, CCI stocks, and private traders. As a result, domestic demand has turned somewhat subdued.

★ The removal of import duty is expected to benefit the spinning industry by improving access to higher-quality and contamination-free cotton. This could enhance the global competitiveness of Indian yarn, fabrics, and textile products.

★ Meanwhile, attractive cotton prices are likely to encourage farmers to expand acreage by around 7 percent in the upcoming Kharif season. However, the future direction of the cotton market will depend on imported cotton arrivals, global price trends, and the progress of the monsoon. With sowing of the new crop set to begin, weather conditions will remain a key factor influencing market sentiment.