Cotton Acreage Expected to Rise, Buoyed by Higher Support Prices

15-May-2026 06:07 PM

New Delhi: The Central Government has taken a two-pronged approach to boost cotton sowing, productivity, and yield: on one hand, it has launched a comprehensive 'Cotton Mission' backed by substantial funding; on the other, it has significantly hiked the Minimum Support Price (MSP) for cotton.

Consequently, farmers are expected to receive a strong incentive to expand both the acreage under cotton cultivation and its overall production. Although the MSP for cotton has seen substantial increases over the past three years, the actual area under cultivation has been shrinking rather than expanding. This trend has, in turn, led to a decline in production levels.

For the 2026-27 marketing season, the Central Government has announced a substantial hike of ₹557 per quintal in the Minimum Support Price (MSP) for cotton. As a result, compared to the 2025-26 season, the MSP for cotton for the 2026-27 season has risen from ₹7,710 to ₹8,267 per quintal for the medium-staple variety, and from ₹8,110 to ₹8,667 per quintal for the long-staple variety.

Since wholesale market prices for cotton often tend to fall significantly below the Minimum Support Price, the Cotton Corporation of India (CCI) is frequently compelled to intervene in the markets and procure large quantities of cotton directly from farmers. During the ongoing 2025-26 marketing season (October–September), the CCI procured approximately 10 million bales (each weighing 170 kg) of cotton at the MSP.

While the higher support prices will undoubtedly provide relief to cotton growers, they are likely to exacerbate the difficulties faced by the textile industry. Procuring cotton at elevated prices will drive up the production costs of textile products, thereby diminishing their competitiveness in the international export market. This could have an adverse impact on exports and may also increase the likelihood of higher imports from abroad.