Cotton Prices Surge Amid Fears of Lower Production

Mumbai. The deadline for duty-free cotton imports expires on October 31, while production is expected to decline due to reduced cotton acreage and a lack of rainfall in certain regions. Consequently, the industry and trade sectors are showing keen interest in purchasing cotton, causing domestic and global market prices to rise.

Last week, prices jumped by ₹3,000–₹4,000 to reach ₹68,000 per candy (356 kg) due to low arrivals of new cotton stock and a sluggish supply pace in major wholesale markets. In Maharashtra, not only has the area under cotton cultivation shrunk, but severe drought conditions are also hindering crop development.

Anticipating lower production and future price hikes, major producers have begun hoarding cotton stocks, resulting in insufficient arrivals at the markets.

Last week, cotton futures prices for the December 2026 and March 2027 contracts also saw an uptick on the New York-based Intercontinental Exchange (ICE). Similarly, the government agency—Cotton Corporation of India (CCI)—raised the auction price of cotton procured for the 2025-26 season by ₹500 per candy across all states.

During the first nine days of the current marketing season (October 1–9), total cotton arrivals across markets nationwide amounted to approximately 5 lakh bales (each weighing 170 kg). On October 12, around 78,000 bales were supplied, and almost the entire quantity was purchased.