Cotton Procurement by Government Set to Hit Record High

09-Sep-2025 09:09 PM

Ahmedabad. Due to the massive increase of Rs 589 per quintal in the Minimum Support Price (MSP) and the possibility of weakening of domestic market prices due to the suspension of import duty, government procurement of cotton is expected to jump to a new record level during the 2025-26 marketing season (October-September).

Experts say that in the 2024-25 marketing season, about 100 lakh bales (each bale of 170 kg) of cotton was procured by the Cotton Corporation of India (CCI) from Indian farmers at MSP, whereas in 2025-26 its quantity may increase by 40 percent to reach an all-time high of 140 lakh bales.

According to industry analysts, domestic production of cotton is likely to decrease during the current Kharif season as compared to last year because on one hand there has been a decrease in the sowing area of ​​cotton and secondly, floods and rains have also damaged the crop in many areas.

The government has increased the minimum support price of cotton by 8.27 percent to Rs 7710 per quintal for medium-staple category and Rs 8110 per quintal for long-staple varieties. Since there is a huge import of duty-free cotton from abroad, the domestic market price may remain weak.

According to the latest data of the Union Agriculture Ministry, in the current Kharif season, till September 5, 2025, the domestic production area of ​​cotton has come down to 109.17 lakh hectares,

which is about 3 lakh hectares less than the sowing area of ​​112.13 lakh hectares in the same period last year. There are reports of damage to the cotton crop due to heavy rains and floods in states like Punjab, Gujarat, Rajasthan and Maharashtra.