Relief for Textile Industry as CCI Resumes Cotton Sales at Reduced Prices

30-May-2026 01:02 PM

Mumbai. The Cotton Corporation of India (CCI)—a subordinate agency of the Union Ministry of Textiles—has not only resumed the sale of cotton from its stocks but has also reduced its reserve base price in light of the recent softening in global market rates. This move is expected to provide relief to the textile industry.

The Corporation resumed cotton sales on May 29; however, on the first day, it managed to sell only 1,200 bales (each weighing 170 kg). Textile mills showed limited interest in purchasing the cotton. The Corporation has now reduced the price of its cotton by ₹2,300 per candy (356 kg); consequently, the pace of sales is expected to accelerate in the coming days.

On May 29, the Corporation sold approximately 1,200 bales of cotton, of which 800 bales were purchased by textile millers, while the remainder was bought by traders.

This marks the second time in recent days that the Corporation has reduced cotton prices; last week, a reduction of ₹700 per candy was implemented. Thus, the total price reduction now stands at ₹3,000 per candy.

Citing certain technical reasons, the Corporation had suspended cotton sales effective May 22, only to resume them on May 29. However, despite this price reduction, a disparity persists between the price of the Corporation's cotton and the prices prevailing in wholesale markets, leading buyers to show limited interest in purchasing from the Corporation.

Buyers are currently adopting a "wait-and-watch" strategy, as the prevailing market rates for cotton yarn do not justify purchasing raw cotton at higher price points. Consequently, trading activity in the cotton yarn segment has slowed down somewhat.

Cotton prices in the international market have softened in recent days. This trend has also impacted domestic price levels. Resellers are currently selling cotton at rates that are approximately ₹2,000 per candy lower than the prices offered by the CCI.