Due to rains, the quality of cotton fell below the MSP
18-Sep-2025 08:06 PM
Bhatinda. In the past few days, approximately 6,000 bales of cotton from the first harvest of the 2025-26 season arrived in various markets in northern states like Punjab, Haryana, and Rajasthan.
Some old stock also arrived, but due to substandard quality, prices remained weak, and buyers were less interested in purchasing it. This soft cotton also contains cottonseed. The cotton and cottonseed are then separated through ginning.
Due to low buyer interest, the cotton arriving in the markets was priced between Rs. 5,500 and ₹7,200 per quintal, falling ₹500 to ₹2,200 per quintal below the government-designated Minimum Support Price (MSP).
It is worth noting that the Central Government has increased the MSP of cotton by ₹589 for the 2025-26 marketing season, setting it at ₹7,710 per quintal for medium-staple varieties and ₹8,110 per quintal for long-staple varieties.
Punjab, Haryana, and Rajasthan primarily produce medium-staple cotton, while some also produce medium-long-staple cotton, which has a minimum support price of ₹7,860 per quintal.
New cotton arrivals began in the Fazilka market last week, but their quantity and pace are low. Heavy rains and floods in Punjab have not only hindered harvesting and damaged the crop but also damaged it.
Farmers had planned to harvest the new crop since the last week of August, but the torrential rains thwarted these plans. Cotton prices are nowhere near the MSP. The price in the Fazilka market is hovering around Rs 6,600 per quintal, causing significant distress to farmers.
Limited cotton arrivals are being received in the markets of Haryana and Rajasthan, and prices are trading well below the MSP. Buyers say the moisture content in the cotton is very high.
Currently, the damp cotton arrivals are keeping prices weak. Analysts say if the weather remains clear and favorable, cotton supply may increase during the second and third harvesting phases in the coming weeks, and prices may strengthen.