Cotton prices rise amid lower sowing and weak monsoon

23-Jun-2026 12:39 PM

Ahmedabad: Cotton prices in the domestic market have started strengthening due to a combination of weak southwest monsoon conditions, a decline in sowing area, and a rise in international prices.

In major cotton-producing states such as Gujarat, Maharashtra, Telangana, Madhya Pradesh, and Rajasthan, the monsoon has either not arrived or has been very weak so far. This has led to lower acreage and reduced market arrivals, pushing prices higher. Rising global prices and growing demand from the textile industry have further supported the upward trend.

The Cotton Corporation of India (CCI), a government agency, has recently increased the minimum selling price of its cotton stocks by about ₹1,100 per candy (356 kg), which has also contributed to firmness in wholesale markets.

According to the latest weekly data from the Union Ministry of Agriculture, the total cotton sowing area during the current Kharif season stood at only 17.13 lakh hectares as of June 19. This is about 25% lower than 22.82 lakh hectares recorded during the same period last year. The northern states of Punjab, Haryana, and Rajasthan have seen a sharp decline in cotton acreage.

The Cotton Association of India reports that rising international prices are directly influencing domestic cotton markets. On the Intercontinental Exchange (ICE) in New York, cotton futures for December 2026 delivery have increased from 75 cents per pound to 80 cents per pound. This could make cotton imports more expensive.

The government has exempted cotton imports from customs duty for the period from June 1 to October 31, 2026. ICE July cotton contracts have also risen to 76.05 cents per pound.