Cotton season start: prices hold above government support levels

Early arrivals of raw cotton have been recorded in states such as Karnataka, Andhra Pradesh, Rajasthan, Haryana, Telangana, Madhya Pradesh, and Gujarat. According to procurement specialist Ramanuj Das Buba, in the market centers of Raichur, Bellary, Adoni, and Yemmiganur, the price of cotton varies from 9,200 to 9,500 rupees per quintal, depending on the level of moisture in the raw material. For comparison, the center has set a Minimum Support Price (MSP) for the 2026-27 marketing season at 8,267 rupees per quintal for medium-staple cotton and 8,667 rupees for long-staple cotton.

The current price dynamics for cotton on global ICE Futures platforms, where quotes have fallen from 93 to 87 cents per pound, have influenced the domestic market in India. International corporations have lowered their price offers by 2,000 rupees per candy (356 kg), while the Cotton Corporation of India (CCI) has maintained previous levels. Demand is also affected by low activity in the yarn segment: due to a lack of buyers, textile enterprises prefer to use existing stocks while observing market conditions.

Anand Popat of CotYarn TradeLink notes that in Gujarat, prices remain in the range of 1,900–2,000 rupees per maund (20 kg). Due to the delay in the sowing campaign, the harvesting began a month later than usual. Currently, weekly arrivals are about 50,000 bales (170 kg each), however, it is expected that in two weeks this figure will reach 100,000 bales per week. The specialist emphasized the need for additional rainfall to increase the yield of the crop.

According to data from the Ministry of Agriculture as of September 4, the total area under cotton amounted to 109.17 million hectares, which is slightly lower than last year's figure of 109.87 million hectares.